Question
Vinall Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted
Vinall Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit $ 91 Budgeted unit sales (all on credit): July 10,300 August 12,300 September 11,200 October 12,400 Raw materials requirement per unit of output 2.6 pounds Raw materials cost $ 2.6 per pound Direct labor requirement per unit of output 3.3 direct labor-hours Direct labor wage rate $ 28.0 per direct labor-hour Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 20% in the month of purchase 80% in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 20% of the following months raw materials production needs. According to the production budget, how many units should be produced in August?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started