Fuqua Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000
Question # 00192111
Posted By:
Updated on: 02/09/2016 11:46 PM Due on: 12/31/2016
E9-8 Fuqua Company's sales
budget projects unit sales of part 198Z of 10,000 units in January, 12,000
units in February, and 13,000 units in March. Each unit of part 198Z requires 4
pounds of materials, which cost $2 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.
Instructions
1. Prepare a production budget for January and February 2017.
2. Prepare a direct materials budget for January 2017.
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Rating:
/5
Solution: Fuqua Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000