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Prior Corp. produces chairs. It requires 5 feet of wood per chair. Sales are estimated to be: 2020 Units Jan.10,000 units Feb.12,000 March14,000 April8,000 Chairs
- Prior Corp. produces chairs. It requires 5 feet of wood per chair. Sales are estimated to be:
2020 Units
Jan.10,000 units
Feb.12,000
March14,000
April8,000
Chairs on hand at December 31, 2019 were 900 chairs. The corporation wants to maintain an inventory of 10% of the following months' sales in its ending inventory. Prior Corp. had an inventory of wood at December 31, 2019 of 5,000 feet, and it desires to maintain ending inventories of 5% of the following months production needs.Required: Prepare materials budget for January and February.
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