Question
Production and Materials Purchases Budgets White Corporations budget calls for the following sales for next year. Quarter 1 90,000 units Quarter 3 68,000 units Quarter
Production and Materials Purchases Budgets White Corporations budget calls for the following sales for next year.
Quarter 1 | 90,000 units | Quarter 3 | 68,000 units |
Quarter 2 | 76,000 units | Quarter 4 | 96,000 units |
Each unit of the product requires 3 pounds of direct materials. The companys policy is to begin each quarter with an inventory of product equal to 5% of that quarters estimated sales requirements and an inventory of direct materials equal to 20% of that quarters estimated direct materials requirements for production.
Required: Determine the production and materials purchases budgets for the second quarter.
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