ACME Inc. produces a single product with the following information.  Budgeted sales for 2023 are:

	Units
April	60,000
May	80,000
June	65,000
July	55,000

 

The company has the following inventory requirements:

• The finished goods ending inventory must be 10% of the following month's sales.
• Each unit requires 5 grams of raw materials.
• The raw materials ending inventory must be equal to 15% of the following month's production needs for raw materials.

 

Required (the three-line report heading is not needed for this question):

1. a production budget for the second quarter beginning April, by month and in total. (9.5 marks)
2. a direct material purchases budget showing the quantity of materials to be purchased for May.

Answer rating: 100% (QA)

ANSWER IS To prepare the production budget for the second quarter April May and June we need to calc... View the full answer