Chapter 7 Quz Rulz Co provides the folowing sales forecast for the next four mon

Question

Chapter 7 Quz Rulz Co provides the folowing sales forecast for the next four months 4 sales (units) 680 760 710 880 The company wants to end each month with ending frished goodsinventory equal to 40% of next merens forecasted sales. Finished goods inventory on Apri 1 is 272 unts Assume July's budgeoed production is 710 units. In addition, each tnished unit requres six pounds (b%) of row materials ond the company wants to end each morn wim rew meerials nventory equal to 40% of next month's production needs Begning few materials nventory for April was 1709 pounds. Assume direct maperials cost $5 per pound Prepare direct matenais budget for Aer4, Mayand June (Round your intermediate calculations and final answers to the nearest whole dollar amount Direct Materials Budget For April, May, and June Matelials to be

Explanation / Answer

Prepare production budget :

Prepare direct material budget :

April May June Budgeted sales (units) 680 760 710 Add: Desired ending inventory (units) 304 284 320 Total needs 984 1044 1030 Less: Beginning inventory (units) (272) (304) (284) Production units 712 740 746

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