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Author Question: Julie Finn is preparing the materials purchases budget for the first quarter. The production manager ... (Read 37 times)

jlbond23

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on: Feb 5, 2023

Question 1

Mounds Company has provided you with the following sales data.

​​SeptemberOctoberNovemberDecember
Budgeted unit sales20,00030,00050,00040,000

The company requires that 5% of the next month's sales be on hand at the end of each month. Budgeted production for October is
◦ 35,000.
◦ 31,500.
◦ 31,000.
◦ 30,000.

Question 2

Julie Finn is preparing the materials purchases budget for the first quarter. The production manager has provided the following production budget information: January - 60,000 units, February - 55,000 units, March - 50,000 units. Each unit requires 5 gallons of direct materials, and Julie wants to maintain an ending inventory equal to 15% of the next month's production needs. How many gallons will Julie budget to purchase in February?
◦ 312,500
◦ 282,500
◦ 271,250
◦ 275,000
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by jlbond23 on Feb 5, 2023

bainer89

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Reply #1 on: Feb 5, 2023
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jlbond23

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Reply 2 on: Feb 5, 2023
Wow, this really help

jamesnevil303

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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