Question

3. Troy Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales...

3. Troy Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales October 40,000 November 70,000 December 50,000 January 60,000

There were 14,000 units of finished goods in inventory at the beginning of October. Plans are to have an inventory of finished product equal to 25 percent of the unit sales for the next month. Five pounds of a single raw material are required for each unit produced. Each pound of material costs $10. Plans are to have inventory levels for materials equal to 30 percent of the amount of materials needed to satisfy next month's production and 84,000 units of raw material on hand at the end of December. Materials inventory on October 1 was 60,000 pounds. Required: - 8points a. Prepare a production budget in units for October, November, and December. b. Prepare a purchase budget in pounds and dollars for October, November, and December

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Lubriderm Corporation has the following budgeted unit sales for the next six-month period: Month Unit Sales...
Lubriderm Corporation has the following budgeted unit sales for the next six-month period: Month Unit Sales June 130,000 July 100,000 August 160,000 September 200,000 October 140,000 November 180,000 There were 26,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five pounds of materials are required for each unit produced. Each pound of material costs $20. Raw material...
Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected boomerang sales (in units) for the upcoming...
Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected boomerang sales (in units) for the upcoming months are as follows: July Aug. Sept. Oct. Nov. Dec. Budgeted unit sales 12,000 15,000 10,000 8,000 7,000 11,000 Mate likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales. Seven ounces of plastic resin are needed to produce every boomerang. Mate likes to have enough plastic resin on hand at the end of the month to cover...
The following are budgeted data: Sales in Units: Month 1 = 15,000; Month 2 = 20,000;...
The following are budgeted data: Sales in Units: Month 1 = 15,000; Month 2 = 20,000; Month 3 = 18,000 Production in Units: Month 1 = 16,000; Month 2 = 22,000; Month 3 = 15,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. At the beginning of Month 1, 3,200 lbs. of materials were on hand. Purchases of raw...
Required information Use the following information for the Exercises below. Ruiz Co. provides the following sales...
Required information Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four months:     April May June July Sales (units) 650 730 680 770 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 130 units. Assume July's budgeted production is 680 units. In addition, each finished unit requires six pounds (lbs.) of raw...
Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for...
Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four months:     April May June July Sales (units) 610 690 640 730 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 122 units. Assume July's budgeted production is 640 units. In addition, each finished unit requires five pounds (lbs.) of raw materials and...
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June...
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in Units 320 360 380 320 Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 128 units. A finished unit requires 5 pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 280 pounds of B. Each month's ending Raw Materials Inventory...
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June...
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 240 280 300 240 Each month's ending Finished Goods Inventory in units should be 40% of the next month's sales. March 31 Finished Goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of direct material B. Each month's...
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,200 cushions and 13,500...
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,200 cushions and 13,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 11,000 Cushions November 13,000 Cushions December 16,000 Cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet...
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June...
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in Units 410 450 470 410 Each month's ending Finished Goods Inventory should be 30% of the next month's sales. March 31 Finished Goods inventory is 123 units. A finished unit requires 5 pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 260 pounds of B. Each month's ending Raw Materials Inventory...
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,200 cushions and 13,500...
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,200 cushions and 13,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 11,000 cushions November 13,000 cushions December 16,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT