Question
Production budget ABC Companys budgeted sales for June, July, and August are 12,000, 16000, and 14000 units, respectively. ABC requires 30% of the next months
Production budget ABC Companys budgeted sales for June, July, and August are 12,000, 16000, and 14000 units, respectively. ABC requires 30% of the next months budget unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3600 units. Required: Calculate the number of units to be produced in June and July. Purchases budget In addition to the information presented in the above assignment, each unit that ABC Company produces uses 3 pounds of raw material. ABC requires 25% of the next months budgeted production as raw material inventory each month. Required: Calculate the number of pounds of raw material to be purchased in June.
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