On January 1, 2017, the Hardin Company budget committee agreed on the following data for the 6-month
Question:
On January 1, 2017, the Hardin Company budget committee agreed on the following data for the 6-month period ending June 30, 2017.
Sales units: First quarter 5,600; second quarter 6,300; third quarter 7,000
Finished raw material inventory: 40% of next quarter's production requirements
Finished goods inventory: 25% of next quarter's expected sales units
Third quarter production: 7,820 units.
Inventories of raw materials and finished goods ending on December 31, 2016 follow the same percentage relationships with production and sales in 2017. 5 pounds of raw materials are required to make each finished unit. Purchased raw materials are expected to cost $4 per pound.
Prepare a quarterly production budget for the 6-month period ending June 30, 2017.
Prepare a quarterly direct materials budget for the 6-month period ending June 30, 2017.
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso