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Prepare a production budget for the given months

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Question: 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, 2016. Prepare a production budget for January and February 2017.

Reference no: EM131756666

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