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Please Show work or explain how you got the answers Chapter 15 P1: City Corporation manufactures and sells a seasonal product that has peak sales
Please Show work or explain how you got the answers
Chapter 15 P1: City Corporation manufactures and sells a seasonal product that has peak sales in the third quarter. The following information concerns operations for Year 2-coming year. Year 2 2 60000 1 40000 Quarters 3 100000 Budgeted unit sales 4 50000 (a) The company's single product sells for $8 per unit. Budgeted unit sales for the next four quarters are as follows: (b) The company desires an ending finished goods inventory at the end of each quarter equal to 30% of budgeted unit sales for the next quarter. On December 31, Year 1, the company had 12,000 units on hand. (c) Five pounds of raw materials are required to complete one unit of product. The company requires ending raw materials inventory at the end of each quarter equal to 10% of the following quarter's production needs. On December 31, Year 1, the company had 23,000 pounds of raw materials on hand. Prepare the following budgets: 1. The sales budget for Year 2 quarters and total figures. 2. The production budget for Year 2 quarters and total figures. 3. The direct material budget for Year 2 quarters and total figuresStep by Step Solution
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