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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.
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