(a) 1 2 Year On January 1, 2017, the Hardin Company budget committee has reached
ID: 2449547 • Letter: #
Question
(a)
1
2
Year
On January 1, 2017, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017.Sales units: First quarter 5,000; second quarter 6,900; third quarter 8,000 Ending raw materials inventory: 40% of the next quarter’s production requirements Ending finished goods inventory: 25% of the next quarter’s expected sales units Third-quarter production: 7,640 units.
The ending raw materials and finished goods inventories at December 31, 2016, follow the same percentage relationships to production and sales that occur in 2017. 5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $6 per pound.
Explanation / Answer
Production budget of 6 months period
Quarter 1 Quarter 2 Quarter 3 Year Expected unit Sales 5000 6900 8000 11900 Add: Desired Ending Finished Goods Unit(25 % Nex quarter Wxpected Sales ) 1725 2000 6725 8900 Less:Beging Finished Good s Unit 1250 1725 Required Production Units 5475 7175Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.