Question
Rhett Corporation manufactures and sells dress shirts. Rhett Corporation will use the following information to prepare its master budget for the first quarter of the
Rhett Corporation manufactures and sells dress shirts. Rhett Corporation will use the following information to prepare its master budget for the first quarter of the year:
Rhett Corporation budgeted sales in units:
- April: 30,000 units
- May: 26,000 units
- June: 27,000 units
- July: 26,000 units
Selling price: $22 per shirt
Information for the Production Budget:
- Ending finished goods inventory at March 31st:4,500 shirts
- Desired ending inventory of shirts:15% of the next month's sales
Information for the Direct Materials Budget:
- Each shirt (unit) requires:3 yards of cloth
- Ending Inventory of cloth in yards at March 31st:8,820 yards
- Desired ending inventory of cloth in yards:10% of the next month's production needs
- Materials needed for production for July:77,550 yards
- Cloth costs:$2 per yard
Required:
Using the above information, enter the totals for the sales, production and materials budgets below.For the numbers listed with a "?". please calculate those using a piece of scratch paper.
Your amounts should beWHOLE NUMBERS ONLY.NO COMMAS, NO DECIMALS, NO DOLLAR SIGNS or other characters.
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