Question
Sofa Limited manufactures sofas.It has budgeted sales of 7,000 units for June, 9,500 units for July and 10,000 units for September. The company's finished goods
Sofa Limited manufactures sofas.It has budgeted sales of 7,000 units for June, 9,500 units for July and 10,000 units for September. The company's finished goods inventory policy requires it to holdfinished goods at each month end equal to 85% of the next month's sales. The closing finished goods inventory for May is 5,950 units.
Each sofa requires 3 units of raw material URT. Each unit costs 40 and the supplier grants Sofa Limited one month's credit. The raw material inventory policy requires that the company hold inventory of raw materials at the end of each month sufficient to meet 50% of the follow month's production requirement.
The production budget for June is? units
and for July it is?units.
The budgeted payment to the supplier of URT in September is ?.
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