Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 of 4 0.54/1 Show Attempt History Current Attempt in Progress Fuqua Company's sales budget projects unit sales of part 1987 of 10,800 units

image text in transcribed

Question 2 of 4 0.54/1 Show Attempt History Current Attempt in Progress Fuqua Company's sales budget projects unit sales of part 1987 of 10,800 units in January, 12,600 units in February and 13,500 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2016. Your answer is partially correct. Prepare a production budget for January and February 2017 FUQUA COMPANY Production Budget For the Month Endine January 31, 2017 V January February I Unit Sales 10,300 12,700 Desired Ending Finished Goods Inventory 2,540 2,640 uired Units 13,340 15,340 Beginning Finished Goods inventory 2,160 2.540 Production Units 11,160 12,800 e Textbook and Media Your answer is partially correct. Prepare a direct materials budget for January 2017. FUQUA COMPANY Direct Materials Budget For the Month Ending January 31, 2017 January Units To Be Produced 11.180 Direct Material Pounds Per Unit 3 Total Pounds Needed for Production 33,540 Add Desired Pounds in Ending Materials Inventory 15,360 Total Materials Required 48.900 Less Beginning Direct Materials 13,416 Direct Materials Purchases 35,484 Cost Per Pound $ 4 Total Cost of Direct Materials Purchases $ 141,936 e Textbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Knowledge Auditing Foundations For Knowledge Management Implementation

Authors: Patrick Lambe

1st Edition

0262545039, 978-0262545037

More Books

Students also viewed these Accounting questions

Question

Th e last time I complained, nothing happened.

Answered: 1 week ago

Question

Th ey could have made my situation worse.

Answered: 1 week ago