Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12

Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements:
The finished goods inventory on hand at the end of each month must be equal to 16,300 units plus 10% of the next months sales. The finished goods inventory on March 31 is budgeted to be 28,000 units.
The raw materials inventory on hand at the end of each month must be equal to 20% of the following months production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,500 components.
The company maintains no work in process inventories.
A sales budget for the All Weather speaker is as follows:
Budgeted Sales in Units
April 126,000
May 148,000
June 200,000
July 101,000
August 60,700
Required:
1. Prepare a production budget for the All Weather for April, May, June and July.
2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total.

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

Knowledge Audit Complete Self Assessment Guide Practical Tools For Self Assesment

Authors: Gerardus Blokdyk

1st Edition

0655199837, 978-0655199830

More Books

Students also viewed these Accounting questions

Question

Do you intend to grow the business to the point of an IPO?

Answered: 1 week ago

Question

List the components of the strategic management process. page 72

Answered: 1 week ago