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Question - Sales forecast for 8 months for window company for 2010:
Jan. Units: 10,000
Feb. Units 17,000
March units 13,000
April units 18,500
May units 22,100
June units 24,300
July units 26,200
Aug. Units 27,000
Inventory on Dec. 31 2009 was budgeted at 1,500 units.
Desired quantity of finished goods inventory at the end of each month in 2010 is to be equal to 15% of the next month's budgeted unit sales.
Each completed unit of finished product requires 1.5 gallons of resin. It is determined that it needs 20% of me t month's raw material needs on hand at the end of each month.
Note: projected production in January: 11,050 Windows
A. What is production budget for January through June of 2010.
B. What is the material purchases budget for same period, assuming that each gallon of resin cost $10.
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