Exercise 21-6 (Part Level Submission) On January 1, 2017, the Hardin Company bud

Question

Exercise 21-6 (Part Level Submission) On January 1, 2017, the Hardin Company budget committee has reached agreement on the following data for the & months ending June 30, 2017 Sales units: 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 2017, the First quarter 5,600; second quarter 6,400; third quarter 7,000 7,440 units. quarter production 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 $4 per pound percentaue ? (a) Prepare a production budget by quarters for the 6 month period ended June 30, 2017 Quarter Attempts:0 of 5 used SAVE FOR LATER mplete the parr above The parts of this question must be completed in order. This part wW be available when

Explanation / Answer

production budget                         Quarter                           1 2 Year expected sale units 5,600 6,400 Add: Ending inventory 1600 1750 total needs 7,200 8,150 less: Beginning inventory 1120 1600 production required 6,080 6,550 12,630 Direct materials budget Quarter 1 2 six months production required 6,080 6,550 7440 pounds required per units 5 5 5 total pounds 30400 32750 37200 add: ending inventory 13100 14880 total need 43500 47630 less Beginning inventory 12160 13,100 materials required 31340 34,530 cost per pound 4 4 materials cost 125360 138120

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