Question: Current Attempt in Progress Shamrock Company is preparing its master budget for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are

Current Attempt in Progress Shamrock Company is preparing its master budget for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales: Sales for the year are expected to total 1,100,000 units. Quarterly sales are 20%, 25%, 25%, and 30%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $46 per unit beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 10% higher than the budgeted sales for the first quarter of 2022. Production: Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume. Direct materials: Each unit requires 2 kg of raw materials at a cost of $10 per kilogram. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2023 are 630,000 kg. Prepare the production budget by quarters for 2022. (Round answers to 2 decimal places, e.g. 15.25) SHAMROCK COMPANY Production Budget (in thousands) For the Year Ending December 31, 2022 Unit sales Add Ending inventory Total required Less Beginning inventory Total eTextbook and Media 1 Quarter 2 3 220,000 275,000 275,000 submission can take up to 10 minutes. (a3) The parts of this question must be completed in order. This part will be available when you complete the part above

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!