Company is preparing its budget for 4th quarter of 2013

Reference no: EM13594924

Company is preparing its budget for 4th quarter of 2013. Ending finished goods inventory is required at 20% of current month sales. On October 1, the finished goods inventory had 20,000 units.Each unit needs 2 lbs of raw material. Ending Raw material Inventory is required at 30% of the material needed for same month production. October 1, the beginning Raw material inventory had 66,000 lbs. Budgeted sales are: October November DecemberUnits sales 120,000 150,000 180,000 a. What is the budgeted production level for each month? b. What is the budgeted raw material purchase for each month?

Reference no: EM13594924

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