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Thank you so much! Gertrude Products expects the following sales of its single product: Required Gertrude has an ending finished goods inventory policy of 10%
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Gertrude Products expects the following sales of its single product: Required Gertrude has an ending finished goods inventory policy of 10% of the next month's sales needs. Each unit requires 5 pounds of Chemical A and 14 pounds of Chemical B. July 1 materiais inventory includes 8,600 pounds of Chemical A and 76,000 pounds of Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 20% of next month's production needs and a Chemical B inventory equal to 100% of next month's production needs. a. Prepare a production budget for Gertrude Products for the quarter ending September 30 . Prepare a direct materials purchases budget for Chemical A for the quarter ending September 30 . Assume a desired ending nventory for Chemical A of 9,140 pounds at September 30, and a constant unit cost of $2.80 per pound Note: Deductible answers must be indicated with a minus sign Step by Step Solution
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