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Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL
Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL 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:
a The finished goods inventory on hand at the end of each month must be equal to units plus of the next month's sales. The finished goods inventory on March is budgeted to be units.
b The raw materials inventory on hand at the end of each month must be equal to of the following month's production needs for raw materials. The raw materials inventory on March for XL is budgeted to be components.
c The company maintains no work in process inventories.
A sales budget for the All Weather speaker is as follows:
tableBudgeted Sales in UnitsAprilMayJuneJulyAugust
Required:
Prepare a production budget for the All Weather for April, May, June and July.
tableApril,May,June,JulyBudgeted sales unitsTotal needs,Required production,
Prepare a direct materials purchases budget showing the quantity of XL components to be purchased for April, May, june and for the quarter in total
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