Question: how do i solve for 3 using the date above? ded ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2019 April May June Total


ded ZIGBY MANUFACTURING Raw Materials Budget April, May, and June 2019 April May June Total 18,320 20,940 22,940 0.50 0.50 0.50 aces 9,160 10,470 11,470 5,235 5,735 5,700 Production budget (units) Materials requirements per unit Materials needed for production Budgeted ending inventory Total materials requirements (units) Beginning inventory Materials to be purchased Material price per unit Budgeted raw material purchases 14,395 16,205 17 170 (5,735) (4,580) 9,815 (5,235) 10,970 11,435 32,220 $ 20 IS 20 S 20 20 S $ 196,300 s 219,400 $ 228,700 $ 644,400 2) Zigby's production manager has suggested that the company try to even out the production between April and May for this large order. Zigby typically produces cnough finished goods to establish its desired ending finished goods inventory. Because the of the increased to May sales for the special order, management is concerned about the stress this order will put on April's production requirements. To accommodate this, Zigby's production manager has suggested the company try to cven out the production between April and May. May's desired ending finished goods inventory will remain unchanged from their original production budget connect). However, April's budgeted ending inventory units will only be increased by 8,000 units, rather than th targeted percentage relating to the special order. Complete the revised production budget below for the quarter. Note: Remember to add 8,000 units to April ending inventory units and double May's budgeted units sales (double May sales used on connect). You may want to refer to the schedules used in connect to assist in completion of the schedules here. Total ZIGBY MANUFACTURING Change to smooth Production Budget April, May, and June 2019 April May Budgeted ending inventory (calculate for 21,680 17,520 April, row 3 of connect for May and Juno) Budgeted units sales for month 23,200 34,200 Required units of available production 44,880 51,720 Beginning inventory (units) (18,560) (21,680) Units to be produced during the month 26,320 38,040 June 18,560 43,800 62,360 (17,520) 44,840 101,200 3) To conserve cash, the purchasing manager has asked to reduce April and May's ending raw materials inventory to equal 30% (down from 50%) of next month's materials requirements. June ending raw materials inventory will remain unchanged (same as on connect). Note - This % changes the calculation of required ENDING INVENTORY of raw material (row 4 of the table) and DOES NOT change the raw material required per unit of production (row 2). This table is completed similarly to the budget table in connect. Additionally, the purchase department has negotiated a 5% discount on raw material if they purchases exceed 10,000 pounds in any given month. The 5% will be only for the poinds purchased over 10,000. (Pounds of material purchased 10,000 pounds x 520 per pound X 5% Calculate the Discount for each month and calculate the "net" purchase amount Project 4: Page 2 of 11 Total June 44,840 .50 22,420 ZIGBY MANUFACTURING Revised Raw Materials Budget April May Production budget (units) 26,320 38,040 Materials requirements per unit .50 .50 (unchanged from connect) Materials needed for production 13,160 19,020 Budgeted ending inventory Total materials requirements (units) Beginning inventory Materials to be purchased Material price per unit 20 Raw Material purchases before Discount Discount (5% of purchases exceeding 10,000 lbs) Budgeted raw material purchases
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