Pargo Company is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and
Question:
Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarter’s budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound.
Management desires to maintain raw materials inventories at 10% of the next quarter’s production requirements. Assume the production requirements for first quarter of 2018 are 450,000 pounds.
Prepare the sales, production, and direct materials budgets by quarters for 2017.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Question Posted: