Bunnell Inc. sells clay pots for $15 each. Budgeted amounts for the first 3 months of 2006

Question:

Bunnell Inc. sells clay pots for $15 each. Budgeted amounts for the first 3 months of 2006 appear below.
January...............16,000 units
February...............18,000 units
March..................17,000 units
Bunnell desires to have clay pots on hand at the end of each month equal to 15 percent of the following month's budgeted unit sales. Each pot requires 4.5 pounds of clay. At the end of each month, Bunnell desires to have 20 percent of production material needs for the next month on hand. The clay costs $0.80 per pound. Each pot produced requires 0.20 hours of direct labor. Assume production for February is 17,850 units.
A. How many pots should Bunnell produce during the month of January?
B. Determine the materials purchases budget amount for January.
C. How much is Raw Materials Inventory on Bunnell's at January 31?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...