4. (25 pts.)
brother are you here i have quick Q for yesterday assignment
Really Cool has the following budgeted unit sales for the next six-month period:
There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month.
Five pounds of materials are required for each unit produced. Each pound of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 15,000 pounds.
a.Prepare production budgets in units for July, August, and September.
Production Budgets in Units
Add: Ending Inventory desired4200030000360002400024000
Total requirement of the month162,000240,000186,000204,000204,000
Less: Opening Inventory24,00042000300003600036000
Production required in units138,000198,000156,000168,000168,000
840,000 MAT REQUIREDmateria required
FOR THIS Q HOW DID YOU GET THE 42000, THE Ending Inventory desired , THANKS