Fuqua Campany\'ssales budget projects unit sales of part 1082 of 10,300 units in

Question

Fuqua Campany'ssales budget projects unit sales of part 1082 of 10,300 units in January, 12,500 units in February, and 13,400 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost ss per pound. Fuqua Company dosires its ending raw materials inventory to equal 40% or the faxt month's production requiements, and its ending finished goods inventory to equal 20? of the next month's expected unit sales. These goals were met at December 31, 2016. Prepare ? duction budget for Januaryend February 2017. FUQUA COMPANY LINK TO TEXT Prepare a direct materiels budget for January 2017 FUQUA COMPANY Direct Materials Budget

Explanation / Answer

Jan Feb Expected sale units 10,300 12,500 Add:Desired ending inventory 2500 2680 total units required 12,800 15,180 less:Desired beginning inventory 2060 2,500 production required 10,740 12,680 Direct materials budget For the month of January & February Jan Feb Production required 10,740 12,680 13,400 pounds required per unit 4 4 4 total pounds 42960 50720 53600 Add:desired ending inventory 40% 20288 21440 total pounds required 63248 72160 less:Desired beginning inventory 17184 25,360 materials required 46064 46,800 cpst per pound 5 5 total cost of material 230320 234000

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