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Prepare production and DM budgets for one quarter. E 6 . 2 ( L 0 3 ) , AP It was autumn, Sue's favorite time
Prepare production and DM budgets for one quarter. EL AP It was autumn, Sue's favorite time of yearand busiest time of year, too. She works at a company that produces applepie filling: sweet, yet a little tart, with just a touch of cinnamon so tasty! And with ripe apples from local suppliers being in season, her company is ramping up production. The following expectations are in place for this last quarter of the year: Sales forecast Additional information: Budgeted selling price is $ per unit. Desired ending inventory of finished goods is of next month's sales. Desired ending inventory of apples is of next month's production needs for October and November, and of next month's production needs for December Desired ending inventory of spice mix is of next month's production needs. Each finished unit requires pounds of apples. Each finished unit requires cup of spice mix. Cost per pound of apples is $ Cost per cup of spice mix is $ Estimated production for January is units. On September the company held exactly its desired levels for both DM Inventory and FG Inventory. Required a Prepare the production budget for applepie filling for the fourth quarter. b Prepare the fourthquarter DM purchases budget for apples and spice mix. c Explain a plausible reason why the company's desired ending inventory percentages for these direct materials are different.
Prepare production and DM budgets for one quarter.
EL AP It was autumn, Sue's favorite time of yearand busiest time of year, too. She works at a company that produces applepie filling: sweet, yet a little tart, with just a touch of cinnamon so tasty! And with ripe apples from local suppliers being in season, her company is ramping up production. The following expectations are in place for this last quarter of the year:
Sales forecast
Additional information:
Budgeted selling price is $ per unit.
Desired ending inventory of finished goods is of next month's sales.
Desired ending inventory of apples is of next month's production needs for October and November, and of next month's production needs for December
Desired ending inventory of spice mix is of next month's production needs.
Each finished unit requires pounds of apples.
Each finished unit requires cup of spice mix.
Cost per pound of apples is $
Cost per cup of spice mix is $
Estimated production for January is units.
On September the company held exactly its desired levels for both DM Inventory and FG Inventory.
Required
a Prepare the production budget for applepie filling for the fourth quarter.
b Prepare the fourthquarter DM purchases budget for apples and spice mix.
c Explain a plausible reason why the company's desired ending inventory percentages for these direct materials are different.
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