Problem 2 (15 points): Stratosphere, Inc. has the following budgeted sales for t

Question

Problem 2 (15 points): Stratosphere, Inc. has the following budgeted sales for the next quarter onth: January February March 10,0001 1100 nits 11,000 12,000 Invento The company d sales. Sales for April are expected to be 14,000 units. Calculate the quantity to be produced during January, February, and March ry of finished goods on hand at the beginning of the quarter is 4,000 units. esires to maintain ending inventory equal to 20% of next month's Problem 3 (10 points): Beridze Manufacturing expects the following units to produce. Each unit requir yards of material. Each yard of material costs $10. Beridze wants to maintain ending inventory of 30% of next month's material needs to cover next month' production. Calculate the Direct Material Budget for January and February. Beginning inventory in January is 15,000 yards. lonth: JanuaryFebruary March nits 10,000 11,000 12,000

Explanation / Answer

3 ) production units :

Note : Next question should be post individually for answer

January February march Sales units 10000 11000 12000 Add: Desired ending inventory 2200 2400 2800 Total 12200 13400 14800 Less; Beginning inventory -4000 -2200 -2400 Production units 8200 11200 12400

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