Reference no: EM13513104

Production and purchases budgets
Caleb Corp. has prepared the following unit sales forecast for 2014:


Estimated ending Finished Goods Inventories are 50,000 units at December 31, 2013; 72,000 units at June 30, 2014; and 120,000 units at December 31, 2014.
In manufacturing a unit of this product, Caleb Corp. uses 3 pounds of Material A and 0.75 gallons of Material B. Materials A and B cost, respectively, $2.50 per pound and $1.80 per gallon.
The company carries no Work in Process Inventory. Ending inventories of direct material are projected as follows:


Prepare a production and purchases budget for each semiannual period of 2014.

Hide
Production Budget - 2014:


Caleb Corp.
Production Budget
For the Year 2014
January-June
July-December
Total
Sales budget



Ending inventory



Beginning inventory



Production







Hide
Material A Purchases Budget - 2014:


Caleb Corp.
Material A Purchases Budget
For the Year 2014
January-June
July-December
Total
Production



Number of pounds



Production budget



Ending inventory



Beginning inventory



Purchases



Times cost per pound
$
$
$
Total cost
$
$
$




Hide
Material B Purchases Budget - 2014:


Caleb Corp.
Material B Purchases Budget
For the Year 2014
January-June
July-December
Total
Production



Number of gallons



Production budget



Ending inventory



Beginning inventory



Purchases



Times cost per gallon
$
$
$
Total cost
$
$
$