Question: Operating budgets: materials purchasing plan Masefield Dairy is preparing a third-quarter budget (July, August, and September) for its ice cream products. It produces five brands
Operating budgets: materials purchasing plan Masefield Dairy is preparing a third-quarter budget (July, August, and September) for its ice cream products. It produces five brands of ice cream, and each uses a different mix of ingredients. Its suppliers deliver ingredients just in time provided that they are given two months' notice. The following table indicates the units of each type of ingredi¬ ent required per unit of each product.
Prepare a monthly purchases budget for the ice cream ingredients.
(LO 8)
MASEFIELD DAIRY REQUIRED INGREDIENTS PRODUCT Ingredients A B C D E Ice cream 1 2 1 1 1 Ingredient 1 2 0 3 1 4 Ingredient 2 0 1 2 4 0 Ingredient 3 1 3 0 2 2 Ingredient 4 0 2 1 0 2 Ingredient 5 3 1 3 0 1 The following table summarizes the estimated unit sales for each product in each of the months in the third quarter.
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