Question

Fuqua Company’s sales budget projects unit sales of part 198Z of 10,700 units in January, 12,200 units in February, and 13,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 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, 2019.

Prepare a production budget for January and February 2020.

FUQUA COMPANY Production Budget                                                                       For the Quarter Ending February 28, 2020For the Month Ending January 31, 2020For the Two Months Ending February 28, 2020
		January		February
Direct Material Pounds Per UnitCost Per PoundUnits To Be ProducedTotal Pounds Needed for ProductionBeginning Finished Goods InventoryBeginning Direct MaterialsTotal Cost of Direct Materials PurchasesRequired Production UnitsDesired Pounds in Ending Materials InventoryExpected Unit SalesDirect Materials PurchasesTotal Required UnitsTotal Materials RequiredDesired Ending Finished Goods Inventory
AddLess:                                                                       Cost Per PoundBeginning Direct MaterialsDirect Materials PurchasesTotal Materials RequiredDirect Material Pounds Per UnitDesired Ending Finished Goods InventoryBeginning Finished Goods InventoryExpected Unit SalesDesired Pounds in Ending Materials InventoryUnits To Be ProducedTotal Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesRequired Production UnitsTotal Required Units
Required Production UnitsTotal Required UnitsDesired Pounds in Ending Materials InventoryExpected Unit SalesBeginning Finished Goods InventoryTotal Materials RequiredBeginning Direct MaterialsTotal Cost of Direct Materials PurchasesDirect Material Pounds Per UnitCost Per PoundTotal Pounds Needed for ProductionDirect Materials PurchasesUnits To Be ProducedDesired Ending Finished Goods Inventory
AddLess:                                                                       Total Required UnitsDirect Materials PurchasesTotal Materials RequiredTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionBeginning Direct MaterialsBeginning Finished Goods InventoryRequired Production UnitsDirect Material Pounds Per UnitUnits To Be ProducedExpected Unit SalesDesired Ending Finished Goods InventoryCost Per PoundDesired Pounds in Ending Materials Inventory
Total Required UnitsDesired Pounds in Ending Materials InventoryDirect Materials PurchasesTotal Materials RequiredBeginning Finished Goods InventoryExpected Unit SalesBeginning Direct MaterialsDesired Ending Finished Goods InventoryDirect Material Pounds Per UnitTotal Cost of Direct Materials PurchasesCost Per PoundTotal Pounds Needed for ProductionUnits To Be ProducedRequired Production Units

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Prepare a direct materials budget for January 2020.

FUQUA COMPANY Direct Materials Budget                                                                       For the Quarter Ending February 28, 2020For the Two Months Ending February 28, 2020For the Month Ending January 31, 2020
		January
Desired Pounds in Ending Materials InventoryUnits To Be ProducedExpected Unit SalesTotal Required UnitsDesired Ending Finished Goods InventoryTotal Materials RequiredBeginning Finished Goods InventoryTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionDirect Material Pounds Per UnitRequired Production UnitsCost Per PoundDirect Materials PurchasesBeginning Direct Materials (Pounds)
Beginning Finished Goods InventoryDirect Materials PurchasesDesired Ending Finished Goods InventoryExpected Unit SalesRequired Production UnitsTotal Required UnitsUnits To Be ProducedTotal Pounds Needed for ProductionDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitTotal Cost of Direct Materials PurchasesBeginning Direct Materials (Pounds)Cost Per PoundTotal Materials Required
Cost Per PoundDesired Ending Finished Goods InventoryDirect Material Pounds Per UnitBeginning Finished Goods InventoryUnits To Be ProducedTotal Required UnitsExpected Unit SalesTotal Cost of Direct Materials PurchasesBeginning Direct Materials (Pounds)Total Pounds Needed for ProductionTotal Materials RequiredDesired Pounds in Ending Materials InventoryDirect Materials PurchasesRequired Production Units

Answer 1

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