PM Q I Help I S Weygandt Managerial Accounting 7e Accounting

PM Q I Help I S Weygandt, Managerial Accounting, 7e Accounting for Decision Making (ACCT 6305 Fuqua Company\'s sales budget projects unit sales of part 198Z of 10,700 units in January, 12,500 units in February, and 14,000 units in Ma requires 4 pounds of materials, which cost $5 per pound. Fuqua Company desires its ending raw requirements, December 31, 2016. materials inventory to equal 40% of the next month\'s production and its ending finished goods inventory to equal 20% of the next month\'s expected unit sales. These goals were met at Prepare a p budget for January and February 2017 Click if you would lilke to Show Work for this question: 25

Solution

FUQUA COMPANY Production Budget For the Two Months Ending February 28, 2017 January February Expected Unit sales 10700 12500 Add Desired Ending Finished goods inventory 2500 2800 Total Required units 13200 15300 Less- Beginning finished goods inventory 2140 2500 Required production units 11060 12800