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Please show work Production and Purchases Budgets Drainage Solutions Culverts produces small culverts for water drainage under two-lane dirt roads. Budgeted unit sales for the
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Production and Purchases Budgets Drainage Solutions Culverts produces small culverts for water drainage under two-lane dirt roads. Budgeted unit sales for the next several months are: Month Sales September 2,300 October 1800 November 1,100 December 800 At the beginning of September, 575 units of finished goods were in inventory. During the final third of the year, as road construction declines, plans are to have an inventory of finished goods equal to 25 percent of the following month's sales. Each unit of finished goods requires 600 pounds of raw materials at a cost of $5 per pound. Management wishes to maintain month-end inventories of raw materials equal to 50 percent of the following month's needs. Five hundred thousand pounds of raw materials were on hand at the start of September Required a. Prepare a production budget for September, October, and November Do not use a negative sign with your answers. Drainage Solutions Culverts Production Budget For the Months of September, October, and November Sept. Oct. Nov. Dec. Budgeted sales Plus desired ending inventory Total inventory Less beginning inventory requirements Budgeted productionStep by Step Solution
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