Problem 2 (15 points) Stratosphere, Inc. has the fotlowing budgeted sales for th

Question

Problem 2 (15 points) Stratosphere, Inc. has the fotlowing budgeted sales for the next quarter January February March Inventory of finished goods on hand at the beginning of the quarter is 4,000 units The company desires to maintain ending inventory-qual to 20% ornext month- sales. Sales for April are expected to be 14,000 units Calculate the quantity to be produced during January, February, and March. Problem 3 (10 points) Beridze Manufacturing expects the following units to produce yards of material. Each yard of material costs $10. Beridze wan. ending inventory of 30% of next month's material needs to cover . production. Calculate the Direct Material Budget for January and Feb. Beginning inventory in January is 15,000 yards. onth: JanuaryFebruary March nits 10,000 11,000 12 ,00

Explanation / Answer

problem 2 production budget Jan Feb March total April Expected sale units 10,000 11,000 12,000 33,000 14,000 Add:ending inventory 2200 2,400 2,800 2,800 total needs 12,200 13,400 14,800 35,800 less:opening inventory 4,000 2,200 2,400 4,000 production required 8,200 11,200 12,400 31,800

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