Question

Masde Corporation produces and sells Product CharlieD. To guard against stockouts, the company requires that 25%...

Masde Corporation produces and sells Product CharlieD. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product CharlieD over the next four months are:

June July August September
Budgeted sales in units 40,000 60,000 50,000 80,000
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Prepare a Production Budget.
Budgeted production for June,July , August.
Masde Corporation
Production Budget
For the Months of June through August
June July August Quarter
Budgeted unit sales 40000 60000 50000 150000
Plus:Desired ending finished goods inventory (25 % of the next month's) 15000 12500 20000 47500
Total needs 55000 72500 70000 197500
Less:Beginning finished goods Inventory 10000 15000 12500 37500
Required production in units 45000 57500 57500 160000
Working Notes :
Desired Ending Inventory = 25 % of next month
June = 60000* 25 % 15000
July = 50000 * 25 % 12500
August = 80000*25% 20000
Beginning finished goods inventory in June month = 40000*25 % = 10000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
M Corporation produces and sells Product D. To guard against stockouts, the company requires that 25%...
M Corporation produces and sells Product D. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product D over the next four months are: June July August September Budgeted sales in units 40,000 60,000 50,000 80,000 Budgeted production for August would be: Multiple Choice 77,000 units 80,000 units 57,500 units 107,000 units
6) DeGrom Corporation produces and sells Product “Mr. Met”. To guard against stockouts, the company requires...
6) DeGrom Corporation produces and sells Product “Mr. Met”. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product “Mr. Met” over the next four months are: June July August September Budgeted sales in units 40,000 70,000 50,000 80,000 Budgeted production for August would be: A) 57,500 units B) 107,000 units C) 70,000 units D) 80,000 units 7) On November 1, Brady Corporation...
ABC Company makes and sells a single product. It requires 2.5 pounds of direct materials to...
ABC Company makes and sells a single product. It requires 2.5 pounds of direct materials to produce one unit of this product. Budgeted units to be produced for the next four months is given below: Budgeted Units to be Produced July 13,000 units August 40,000 units September 39,000 units October 37,000 units The company wants to maintain monthly ending inventories of direct materials equal to 36% of the next month's production needs. The cost of direct materials is $6 per...
ABC Company makes and sells a single product. It requires 4 pounds of direct materials to...
ABC Company makes and sells a single product. It requires 4 pounds of direct materials to produce one unit of this product. Budgeted units to be produced for the next four months is given below: Budgeted Units to be Produced July ?????? units August 17,000 units September 44,000 units October 28,000 units The company wants to maintain monthly ending inventories of direct materials equal to 28% of the next month's production needs. The cost of direct materials is $3.25 per...
Miami Company makes and sells a single product. It requires 4 pounds of direct materials to...
Miami Company makes and sells a single product. It requires 4 pounds of direct materials to produce one unit of this product. Budgeted units to be produced for the next four months is given below: Budgeted Units to be Produced July ?????? units August 17,000 units September 44,000 units October 28,000 units The company wants to maintain monthly ending inventories of direct materials equal to 28% of the next month's production needs. The cost of direct materials is $3.25 per...
ABC Company makes and sells a single product. It requires 4 pounds of direct materials to...
ABC Company makes and sells a single product. It requires 4 pounds of direct materials to produce one unit of this product. Budgeted units to be produced for the next four months is given below: Budgeted Units to be Produced July ?????? units August 17,000 units September 44,000 units October 28,000 units The company wants to maintain monthly ending inventories of direct materials equal to 28% of the next month's production needs. The cost of direct materials is $3.25 per...
ABC Company makes and sells a single product. It requires 4 pounds of direct materials to...
ABC Company makes and sells a single product. It requires 4 pounds of direct materials to produce one unit of this product. Budgeted units to be produced for the next four months is given below: Budgeted Units to be Produced July ?????? units August 17,000 units September 44,000 units October 28,000 units The company wants to maintain monthly ending inventories of direct materials equal to 28% of the next month's production needs. The cost of direct materials is $3.25 per...
ABC Company makes and sells a single product. It requires 2.5 pounds of direct materials to...
ABC Company makes and sells a single product. It requires 2.5 pounds of direct materials to produce one unit of this product. Budgeted units to be produced for the next four months is given below: Budgeted Units to be Produced July 23,000 units August 26,000 units September 9,000 units October 23,000 units The company wants to maintain monthly ending inventories of direct materials equal to 36% of the next month's production needs. The cost of direct materials is $3 per...
ABC Company makes and sells a single product. It requires 2.5 pounds of direct materials to...
ABC Company makes and sells a single product. It requires 2.5 pounds of direct materials to produce one unit of this product. Budgeted units to be produced for the next four months is given below: Budgeted Units to be Produced July 21,000 units August 9,000 units September 31,000 units October 49,000 units The company wants to maintain monthly ending inventories of direct materials equal to 36% of the next month's production needs. The cost of direct materials is $7 per...
Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 9.5 kilograms of...
Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 9.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August 24,200 units September 22,900 units October 24,300 units November 25,500 units December 25,200 units The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 12,400 kilograms of Jurislon...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT