Reference no: EM132603397
On January 1, 2021, the Chinlee Company budget committee reached agreement on the following data for the six months ending June 30, 2021:
1. Sales units: First quarter 4,900; second quarter 5,800; third quarter 7,200
2. Ending raw materials inventory: 40% of the next quarter's production requirements
3 .Ending finished goods inventory: 25% of the next quarter's expected sales units4.Third-quarter production: 7,300 units
The ending raw materials and finished goods inventories at December 31, 2020, had the same percentages for production and sales that are budgeted for 2020. 3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram.
Question 1: production budget by quarters for the six-month period ended June 30, 2021
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