Question

uqua Company’s sales budget projects unit sales of part 198Z of 10,700 units in January, 12,400 units in February, and 13,500 units in March. Each unit of part 198Z requires 2 pounds of materials, which cost $5 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, 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 a production budget for January and February 2017.

FUQUA COMPANY Production Budget                                                                       For the Quarter Ending February 28, 2017For the Month Ending January 31, 2017For the Two Months Ending February 28, 2017
		January		February
Total Cost of Direct Materials PurchasesTotal Materials RequiredBeginning Finished Goods InventoryDirect Materials PurchasesDesired Pounds in Ending Materials InventoryUnits To Be ProducedBeginning Direct MaterialsTotal Required UnitsRequired Production UnitsCost Per PoundDesired Ending Finished Goods InventoryDirect Material Pounds Per UnitTotal Pounds Needed for ProductionExpected Unit Sales
AddLess:                                                                       Desired Ending Finished Goods InventoryTotal Pounds Needed for ProductionCost Per PoundTotal Materials RequiredBeginning Direct MaterialsDesired Pounds in Ending Materials InventoryExpected Unit SalesDirect Materials PurchasesTotal Cost of Direct Materials PurchasesRequired Production UnitsTotal Required UnitsBeginning Finished Goods InventoryDirect Material Pounds Per UnitUnits To Be Produced
Beginning Direct MaterialsDirect Material Pounds Per UnitTotal Required UnitsBeginning Finished Goods InventoryDirect Materials PurchasesTotal Pounds Needed for ProductionRequired Production UnitsTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryUnits To Be ProducedExpected Unit SalesCost Per PoundTotal Materials Required
AddLess:                                                                       Total Required UnitsTotal Materials RequiredTotal Pounds Needed for ProductionDirect Material Pounds Per UnitBeginning Finished Goods InventoryBeginning Direct MaterialsUnits To Be ProducedExpected Unit SalesDesired Pounds in Ending Materials InventoryRequired Production UnitsTotal Cost of Direct Materials PurchasesCost Per PoundDirect Materials PurchasesDesired Ending Finished Goods Inventory
Direct Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionTotal Required UnitsDirect Material Pounds Per UnitDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryCost Per PoundBeginning Finished Goods InventoryUnits To Be ProducedExpected Unit SalesTotal Materials RequiredRequired Production UnitsBeginning Direct Materials

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Prepare a direct materials budget for January 2017.

FUQUA COMPANY Direct Materials Budget                                                                       For the Month Ending January 31, 2017For the Two Months Ending February 28, 2017For the Quarter Ending February 28, 2017
		January
Total Pounds Needed for ProductionTotal Materials RequiredRequired Production UnitsDesired Ending Finished Goods InventoryDirect Material Pounds Per UnitBeginning Finished Goods InventoryBeginning Direct MaterialsCost Per PoundTotal Cost of Direct Materials PurchasesTotal Required UnitsDirect Materials PurchasesDesired Pounds in Ending Materials InventoryExpected Unit SalesUnits To Be Produced
Total Materials RequiredTotal Pounds Needed for ProductionCost Per PoundDirect Material Pounds Per UnitTotal Required UnitsBeginning Finished Goods InventoryExpected Unit SalesDesired Ending Finished Goods InventoryUnits To Be ProducedTotal Cost of Direct Materials PurchasesRequired Production UnitsDesired Pounds in Ending Materials InventoryDirect Materials PurchasesBeginning Direct Materials
Units To Be ProducedTotal Pounds Needed for ProductionCost Per PoundDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesDesired Pounds in Ending Materials InventoryTotal Materials RequiredRequired Production UnitsTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods InventoryBeginning Finished Goods InventoryBeginning Direct MaterialsTotal Required Units
AddLess:                                                                       Total Materials RequiredDesired Ending Finished Goods InventoryTotal Required UnitsTotal Cost of Direct Materials PurchasesRequired Production UnitsExpected Unit SalesTotal Pounds Needed for ProductionUnits To Be ProducedDesired Pounds in Ending Materials InventoryBeginning Finished Goods InventoryDirect Material Pounds Per UnitCost Per PoundBeginning Direct MaterialsDirect Materials Purchases
Cost Per PoundDirect Materials PurchasesBeginning Finished Goods InventoryDesired Ending Finished Goods InventoryDirect Material Pounds Per UnitRequired Production UnitsTotal Required UnitsExpected Unit SalesTotal Pounds Needed for ProductionUnits To Be ProducedTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsTotal Materials RequiredDesired Pounds in Ending Materials Inventory
AddLess:                                                                       Beginning Finished Goods InventoryTotal Cost of Direct Materials PurchasesUnits To Be ProducedDesired Ending Finished Goods InventoryRequired Production UnitsBeginning Direct MaterialsDirect Materials PurchasesDirect Material Pounds Per UnitTotal Required UnitsTotal Pounds Needed for ProductionTotal Materials RequiredExpected Unit SalesCost Per PoundDesired Pounds in Ending Materials Inventory
Desired Pounds in Ending Materials InventoryBeginning Direct MaterialsTotal Pounds Needed for ProductionTotal Materials RequiredBeginning Finished Goods InventoryExpected Unit SalesUnits To Be ProducedCost Per PoundRequired Production UnitsDirect Materials PurchasesTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods InventoryDirect Material Pounds Per UnitTotal Required Units
Total Required UnitsTotal Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesTotal Materials RequiredDesired Ending Finished Goods InventoryRequired Production UnitsBeginning Finished Goods InventoryUnits To Be ProducedDirect Materials PurchasesExpected Unit SalesBeginning Direct MaterialsDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitCost Per Pound		$
Required Production UnitsTotal Required UnitsDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryBeginning Finished Goods InventoryTotal Materials RequiredTotal Cost of Direct Materials PurchasesDirect Material Pounds Per UnitBeginning Direct MaterialsUnits To Be ProducedCost Per PoundTotal Pounds Needed for ProductionDirect Materials PurchasesExpected Unit Sales		$

Answer 1

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