Hello, I need help with 2 questions. I already did them, but my teacher didn't give full credit and sent me this message: For QUESTION 1: The desired ending inventory for June is 2000. That will affect July. So please help me fix it. For QUESTION 2: The direct material budgets (2) need the correct production units Review the examples. Also please let me fix it.

Thank you

QUESTION 1:

Chow Corporation manufactures children's chairs made of PVS plastic tubing and heavy canvas material. Each chair requires eight feet of the PVC tubing and three yards of material. Budgeted sales are 20,000 chairs for June, 25,000 chairs for July and 30,000 chairs for August. Ending finished goods inventory is budgeted at 10% of the current month's sales. Ending materials inventories are budgeted at 10% of the current month's production.

Prepare a production budget for each of the months of June, July and August. Assume the beginning inventory of chairs in June will be 2,500 units.

ANSWER

PREPARE PRODUCTION BUDGET

	JUNE	JULY	AUGUST
SALES IN UNITS	25000	25000	30000
ADD: DESIRED ENDING INVENTORY	2500	2500	3000
TOTAL NEEDS	27500	27500	33000
LESS: BEGGINNING INVENTORY	(2500)	(2500)	(2500)
PRODUCTION NEEDS	25000	25000	30500

QUESTION 2:

Chow Corporation manufactures children's chairs made of PVS plastic tubing and heavy canvas material. Each chair requires eight feet of the PVC tubing and three yards of material. Budgeted sales are 20,000 chairs for June, 25,000 chairs for July and 30,000 chairs for August. Ending finished goods inventory is budgeted at 10% of the current month's sales. Ending materials inventories are budgeted at 10% of the current month's production.

Prepare schedules showing (1) purchase requirements for PVC tubing and for (2) materials required for each of the months of June, July and August. Assume 16,000 feet of PVC tubing and 6,000 yards of material are on hand at the beginning of June.

ANSWER:

PREPARE MATERIAL PURCHASE BUDGET FOR PVC TUBING

	JUNE	JULY	AUGUST
PRODUCTION UNITS	25000	25000	30500
RAW MATERIAL PER UNIT	3	3	3
RAW MATERIAL FOR PRODUCTION	75000	75000	91500
ADD: ENDING INVENTORY	7500	7500	9150
TOTAL NEEDS	67500	67500	82350
LESS: BEGGINNING INVENTORY	(6000)	(7500)	(7500)
MATERIAL PURCHASE	61500	60000	74850