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Author Question: Lubriderm Corporation has the following budgeted unit sales for the next six-month period: MonthUnit ... (Read 109 times)

clmills979

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on: Mar 6, 2021
Lubriderm Corporation has the following budgeted unit sales for the next six-month period: 

MonthUnit Sales
June90,000
July120,000
August210,000
September150,000
October180,000
November120,000 

There were 30,000 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 $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 15,000 pounds. 

Required:
a.  Prepare production budgets in units for July, August, and September.
b.  Prepare a purchases budget in pounds for July, August, and September, and give total purchases in both pounds and dollars for each month.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by clmills979 on Mar 6, 2021

Cnarkel

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Reply #1 on: Mar 6, 2021
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clmills979

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Reply 2 on: Mar 6, 2021
:D TYSM

bigcheese9

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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