Prepare a direct materials budget for january 2014

Reference no: EM13550670

Fuqua Company's sales budget projects unit sales of part 198Z of 12,900 units in January, 17,200 units in February, and 19,900 units in March. Each unit of part 198Z requires 2 pounds of materials, which cost $5 per pound. Fuqua Company desires its ending raw materials inventory to equal 30% of the next month's production requirements, and its ending finished goods inventory to equal 30% of the next month's expected unit sales. These goals were met at December 31, 2013. Prepare a production budget for January and February 2014. Prepare a direct materials budget for January 2014.

Reference no: EM13550670

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