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Prepare a production budget for january and february

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Problem - Fuqua Company's sales budget projects unit sales of part 198Z of 10,700 units in January, 12,500 units in February, and 14,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $5 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2019. Prepare a production budget for January and February 2020.

Reference no: EM132707533

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