Question: B C D E F G H I J L M N 1 Company has prepared a sales budget of 4 5 , 0 0

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1 Company has prepared a sales budget of 45,000 finished units for a three month period the company has in invetory of 16,000 units of finshed goods on hand at Dec 31 and has a target finished goods inventory of 18,000 units at the end of the succeding quarter
t takes four gallons of direct materias to make one unit of finished product. The company has an inventory of 60,000 gallons of direct materials at December 31 and has a target inventory of 80,000 gallons at end of suceeding quarter
Prepare the Production Budget and Direct Materials Budget and answer the followirig questions
How many gallons of direct materials should be purchased during the threee mothh period ending march 31
ANSWER THE BELOW QUESTIONS AND CLEARLY IDENTIFY EACH ANSWER WITH EACH QUESTION
1 For the Production budget, what are the requiements for finished units
2 For the Production budget, how many finished units need to be produced to meet the requirments
3 For the Direct Materials budget, what are the requiements for gallons needed
4 For the Direct Materials budget, how many gallons need to be purchased
5 If the cost per gallon of Direct Materials is $1.50, what is the dollar amount of purchase
NOTE FOR THIS PROBLEM YOU HAVE TO WORK IT OUT AND PROVIDE THE ANSWER IN MOODLE MAKE SURE IDENTIFY THE ANSWSER TO EACH QUESTION CLEARLY
B C D E F G H I J L M N 1 Company has prepared a

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