Teletub toys ltd manufactures and distributes a popular

Assignment Help Accounting Basics

Reference no: EM13605146

Teletub Toys Ltd manufactures and distributes a popular children's' character to toy retailers. This product requires three kilograms of material to manufacture one unit. The company is currently planning raw materials needs for the fourth quarter of the year (October, November and December). Peak sales typically occur in December.

Teletub Toys has the following inventory requirements:

• Finished goods inventory at the end of each month must be equal to 5,000 units plus 30% of next month's sales.

• Finished goods inventory on September 30 is budgeted to be 17,000 units.

• Raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials.

• The raw materials inventory on September 30 is budgeted to be 64,500 kgs.

• The company maintains no work in progress inventories.

The sales budget for Teletub Toys is shown below:

Month Budgeted Sales (units)
September 20,000
October 40,000
November 50,000
December 70,000
January 35,000
February 20,000
March 10,000

Required

1. Prepare a production budget for October, November and December.

2. Prepare a raw materials budget for October, November and December.

3. Explain why the company plans to produce more units than it sells in October and November and fewer units than it sells in December.

Reference no: EM13605146

Questions Cloud

Compute the torsional shear stress in a hallow shaft with : compute the torsional shear stress in a hallow shaft with an outside diameter of 40 mm and an inside diameter of 30 mm

Juanita is trying to decide whether or not to attend : juanita is trying to decide whether or not to attend college during the next 12-week session. she has the following

The ball at is kicked such that 60 if it strikes the : the ball at is kicked such that 60 . if it strikes the ground at having coordinates 25 -25 determine the speed at

Determine the null and alternative hypotheses b explain : determine the null and alternative hypotheses b explain what it would mean to make a type i error and c explain what it

Teletub toys ltd manufactures and distributes a popular : teletub toys ltd manufactures and distributes a popular childrens character to toy retailers. this product requires

Assume you purchase a ticket to a local football game for : assume you purchase a ticket to a local football game for next week at a cost of 50. before the day of the game you

Determine the point estimate of the population the margin : determine the point estimate of the population the margin of error for the following confidence interval and the number

For 2012 selene company initiated a sales promotion : for 2012 selene company initiated a sales promotion campaign that included the expenditure of an additional 25000 for

Rarons rockers is in the process of preparing a production : rarons rockers is in the process of preparing a production cost budget for august. actual costs in july for 120

User Account

All Pages