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Tsosie Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The
Tsosie Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The budgeted selling price per unit is $103. Budgeted unit sales are: April - 9,300 units May - 11,300 units June - 9.800 units The ending finished goods inventory equals 10% of the following month's sales. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 2 pounds of raw materials. The raw materials cost $4.00 per pound. June's total pounds required for production is 20,200. (Hint: you need this to compute desired ending inventory for Direct Materials Budget) Prepare a sales budget, production budget, direct materials budget for the month of May. (Use $ for amounts in dollars, and do not use a $ for amounts in units. And use only whole dollars, no cents. Also, include the comma for to separate the thousands, 1.e. 20,000) I.e. 20,000 Sales Budget May Expected Sales (units) Sales Price per Unit Total Sales Revenue Production Budget May Expected Sales (in units) Desired Ending Inventory Total Required Units Beginning Inventory Required Production Direct Materials Budget May Units to Be Produced Direct Material per Unit Total Pounds Needed for Production Desired Ending Inventory Total Material Required Beginning Inventory Pounds of Direct Material Purchase Requirements Cost per Pound Total Cost of Direct Material Purchase
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