C.J.\'s Cookie Company produces chocolate chip cookies. Raw materials inventory

Question

C.J.'s Cookie Company produces chocolate chip cookies. Raw materials inventory includes a mix consisting of flour, sugar and chocolate chips at a                    standard cost of $5.00 per pound. C.J. Uses 1/20 of a pound of raw materials per cookie. C.J's anticipates quarterly sales for the first 3 quarters of 2012 as                    follows:                 

Budgeted Sales, 1st quarter 2012.........300,000 cookies                 

Budgeted Sales, 2nd quarter 2012........400,000 cookies                 

Budgeted sales, 3rd quarter 2012.........250,000 cookies                 

*materials needed for quarter 3 ...........16,250 lbs                 

Beginning finished goods inventory is 90,000 cookies. Beginning raw materials inventory is 6,000 pounds. Target raw materials is 40% of next quarter's                    materials needs. Target finished goods inventory is 30% of next quarter's sales.                 

Required:                 

Prepare a production budget and a direct materials budget of C.J's Cookie Company for the first 2 quarters of 2012

There needs to be a production budget for quarters 1 and 2.  and a Direct Materials budget for quarters 1 and 2

Explanation / Answer

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.