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White Corporations budget calls for the following sales for next year: Quarter 1 84,500 units Quarter 3 62,100 units Quarter 2 73,000 units Quarter 4
White Corporations budget calls for the following sales for next year:
Quarter 1 | 84,500 | units | Quarter 3 | 62,100 | units |
---|---|---|---|---|---|
Quarter 2 | 73,000 | units | Quarter 4 | 92,400 | units |
Each unit of the product requires 3 pounds of direct materials. The companys policy is to begin each quarter with an inventory of product equal to 5% of that quarters estimated sales requirements and an inventory of direct materials equal to 20% of that quarters estimated direct materials requirements for production.
Required:
1. Determine the production budget for the second quarter.
2. Determine the materials purchases budget for the second quarter.
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