PLSSanin Exerclee 23-6 (Part Level Submisslon) on lenusry 1, 3017, bhe ardn Comp

Question

PLSSanin Exerclee 23-6 (Part Level Submisslon) on lenusry 1, 3017, bhe ardn Company budget commatse hes rmeched apenment on the mon ending ue, o inst quarter S,400, second quarter 7,000, third quater 7,600 Sales units Indng finished goods inventory: 25% of the next oater, expected sale, units The ending raw materiais and finished goods inventories at December 31, 2016, ollow the same parcentage relationsnhios to productien and saies (Part 840 units. hat ooour in 2017, 4 pounds of rawe materials are required to make each unit of finished goods Rew matenals purchased are expected to coet (a) Prepare a production budget by quarters for the 6-monch periad ended Juhe 30, 2017 8 9 5

Explanation / Answer

Answer: (a)

Particulars First Qtr Second Qtr Six months (a) (b) (a+b) Sales in units 5400 7000 12400 Add: Desired ending finfished goods inventory 1750 1900 3650 7000*25% 7600*25% Total units required 7150 8900 16050 Less: beg finished goods inventory 1350 1750 3100 5400*25% 7000*25% Total units req to be produced 5800 7150 12950

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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