Question 1 Fuqua Company\'s sales budget projects unit sales of part 1982 of 10,

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Question 1 Fuqua Company's sales budget projects unit sales of part 1982 of 10,300 units in January, 12,000 units in February, Each unit of part 198Z requires 4 pounds of materials, which cost $4 per pound equal 40% of the next month's production requirements, and its ending unit sales. These goals were met at December 31, 2016. January, 12,000 units in February, and 13,500 units in March. y desires its ending raw materials inventory to finished goods inventory to equal 20% of the next month's expected Prepare a production budget for January and February 2017. FUQUA COMPANY Production Budget February January Prepare a direct materials budget for January 2017. FUQUA COMPANY Direct Materials Budget January Question Attempts: 0 of or related companies Al rights reserved

Explanation / Answer

Prepartion of Production Budget Jan Feb Mar Sales Unit 10300 12000 13500 Add: Ending Inventory (20% of Nex Month Sales) 2400 2700 0 Less Beginning Inventory 2400 2700 Production Unit 12700 12300 Preparation of Direct Material Purchase Budget Jan Feb Production Unit 12700 12300 Raw material Rquired for Prodcution Unit @ 4 Pound/Unit 50800 49200 Add: Ending Inventory ( in Pound) 40% of Next Month 19680 Less: Beginning Inventory (in Pound) 0 Total Raw Material Purchase ( Pound) 70480 Price/Pound $4.00 Total Raw Material Purchase Cost $281,920

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