Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 22 Jul 2017 My Price 4.00

raw materials

1. Rad Co. provides the following sales forecast for the next four months:

 

April

May

June

July

Sales (units)

500

580

530

600

The company wants to end each month with ending finished goods inventory equal to 20% of next month’s sales. Finished goods inventory on April 1 is 174 units. Assume July’s budgeted production is 540 units.

Prepare a production budget for the months of April, May, and June.

2. In addition, assume each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month’s production needs. Beginning raw materials inventory for April was 663 pounds.

Prepare a direct materials budget for April, May, and June.

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Jul 2017 10:07 PM My Price 4.00

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