Lubriderm Corporation has the following budgted Month june july 120555 2100 Augu

Question

Lubriderm Corporation has the following budgted Month june july 120555 2100 August September October 15080 18000 November 120000 There were of finished goods in inventory at the beiegoe have an inventory of finished products that eqpal 250% of the unit sales for tdhe werst w Five pounds of materials are required for each unit produced. Eachpour dof material-“ Inventory levels for materials are equal to 300% of the needs for tenent-th Matnh inventory on yutoe 1 was 15,000 pounds. Prepare production budgets in units for July. August, and September Prepare a purchases budget in equired pounds for July. August, and Septembes, and eowe voal aryeme b. purchases in both pounds and dollars for each month

Explanation / Answer

June July August September October November a) Budgeted sales in units 90000 120000 210000 150000 180000 120000 Desired ending inventory 24000 42000 30000 36000 24000 Total needs 114000 162000 240000 186000 204000 Less: Beginning inventory 30000 24000 42000 30000 36000 Budgeted production 84000 138000 198000 156000 168000 b) Materials required for production in lbs 420000 690000 990000 780000 840000 Desired ending inventory 207000 297000 234000 252000 Total material needs in pounds 627000 987000 1224000 1032000 Less: Beginning inventory 15000 207000 297000 234000 Purchases required in lbs 780000 927000 798000 Cost of purchases at $8 per lb 6240000 7416000 6384000

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