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Problem 1- Crest Products expects the following sales of its single product: August September October November December Units 25,000 24,000 22,000 20,000 17,500 Crest desires
Problem 1- Crest Products expects the following sales of its single product: August September October November December Units 25,000 24,000 22,000 20,000 17,500 Crest desires an ending finished goods inventory to be equal to 30% of the next month's sales needs. August 1 inventory is projected to be 7,800 units. Each finished unit requires 2 units of component X and 11 units of component Z. August 1 materials inventory includes 5,000 units of component x and 184,000 units of component Z. Crest desires to maintain a component X inventory equal to 10% of next month's production needs and a component Z inventory equal to 70% of next month's production needs. a. Prepare a production budget for Crest for as many months as is possible. b. Prepare a raw materials purchases budget for both Component X and Component Z for the months of August through October. August September October November December Sales +Ending Inv Beginning Inv Production
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