Prepare a sales budget and production budget

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Reference no: EM132510850

ABC company produce product X and he needs to make a budget for the next quarter, with the following information:

Sales units

April 10,000 units

May 20,000 units

June 30,000 units

July 40,000 units

Additional information:

a- The selling price is $4 per unit sold.

b- The ending finished good inventory is 50% from the next month expected sales.

c- The ending direct material inventory is 20% from the next month production direct material requirement.

d- Each unit require 2 pounds of direct material and the cost per pound is $3

e- The ending direct material inventory of June is 18000 pounds.

Required:

Question 1: Prepare a sales budget , production budget and direct material budget.

Reference no: EM132510850

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