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Category > Accounting Posted 31 May 2017 My Price 5.00

Prepare a production budget by quarters for the 6-month period ended

On January 1, 2011 the Batista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2011.

Sales units:

First quarter 5,000; second quarter 6,000; third quarter 7,000

Ending raw materials inventory:

50% of the next quarter’s production requirements

Ending finished goods inventory:

30% of the next quarter’s expected sales units

Third-quarter production:

7,250 units

The ending raw materials and finished goods inventories at December 31, 2010, follow the same percentage relationships to production and sales that occur in 2011.Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.

Instructions

(a) Prepare a production budget by quarters for the 6-month period ended June 30, 2011.

(b) Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2011.

Answers

Alpha Geek
(8)
Status NEW Posted 31 May 2017 06:05 AM My Price 5.00

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Attachments

file 1496213574-Answer.docx preview (180 words )
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