X plc. has budgeted the following unit sales:  

Jun Jul Aug Sep Oct Nov

10,000 12,000 15,000 10,000 13,000 12,000

The standard material usage is 2 pounds/units. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 15% of the following month's anticipated sales. For the materials, the maintained rate is 10% of next month's production requirement.

Requirements:

1. Prepare production budgets for the months in the 3rd quarter. (1.0 mark)

2. Compute material for production and purchasing for each months in the quarter. (1.0 marks)

Answer rating: 100% (QA)

To prepare the production budgets for the months in the third quarter July August and September we n... View the full answer