Qno 12

On January 1, 2023, the Vaughn Company budget committee reached agreement on the following data for the six months ending June 30, 2023: 1. Sales units: First quarter 5,200; second quarter 6,000 ; third quarter 7,200 2. Ending raw materials inventory: 40% of the next quarter's production requirements 3. Ending finished goods inventory: 25% of the next quarter's expected sales units 4. Third-quarter production: 7,400 units The ending raw materials and finished goods inventories at December 31, 2022, had the same percentages for production and sales that are budgeted for 2022.3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram. Prepare a production budget by quarters for the six-month period ended June 30,2023. Total 11200 13300 14500 \begin{tabular}{|r|} \hline \hline 800 \\ \hline 11700 \\ \hline \end{tabular} VAUGHN COMPANY Direct Materials Budget For the Six Months Ending June 30, 2023 Quarter Units to be produced 1 2 Direct materials per unit 3 3 Total required for production 16200 18900 Total materials required Less : : Beginning inventory Cost per kilogram Total cost of materials purchases $120960$ 4 Total 11700 3 35100 \begin{tabular}{|l|} \hline 16440 \\ \hline \end{tabular} \begin{tabular}{|l|} \hline 51540 \\ \hline \end{tabular} \begin{tabular}{|l||} \hline 14040 \\ \hline \end{tabular} 65580