Prepare a production budget in units

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Reference no: EM13776898

Modern Goods Corporation has the following budgeted sales for the selected six-month period:

Jan 15,000

Feb 20,000

March 35,000

April 25,000

May 30,000

June 20,000

There were 7,500 units of finished goods in inventory at the beginning of January. Plans are to have an inventory of finished product equal to 20 percent of the unit sales for the next month.

Three pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for material equal 30percent of the needs for the next month. Materials inventory on Jan 1 was 5,000 pounds.

A) Prepare a production budget in units for Feb, March, and April

B) Prepare a purchases budget in pounds and dollars for Feb, March and April

Reference no: EM13776898

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