Question: Central Manufacturing, Inc. is preparing budgets for the second quarter of the year. Central produces only one product in its factory. This product requires 4

 Central Manufacturing, Inc. is preparing budgets for the second quarter of

Central Manufacturing, Inc. is preparing budgets for the second quarter of the year. Central produces only one product in its factory. This product requires 4 pounds of material C,3 pounds of material H, and a component, M, that is purchased from another manufacturer. Central operates on a just-intime basis for material C. As a result, Central maintains no inventory of material C. On April 1, the inventory of material H is expected to be 5,000 pounds and the inventory of component M is expected to be 1,800 units. Central wants the inventories of H and M at June 30, to be 20% less than the inventories at April 1. The inventory of finished products at March 31, is expected to be 4,000 units; the desired inventory at June 30, is 6,000 units to allow a buildup for heavy sales in the third quarter. The sales forecast for the second quarter is 16,000 units at $200 each. Budgeted purchase costs are $5 per pound for C,$6 per pound for H, and $50 per component for M.
Do not use negative signs with any of your answers below.
a. Prepare the production budget for the second quarter of the year.
\table[[\table[[Central Manufacturing, Inc.],[Production Budget],[For the Quarter Ended June 30
the year. Central produces only one product in its factory. This product

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!