Jupiter Company's budget for the coming year estimates monthly sales in units for the first five months
Question:
Jupiter Company's budget for the coming year estimates monthly sales in units for the first five months of the year as follows: April, 35,000; May, 38,000; June 40,000; July, 39,000; and August, 38,000.
The ending inventory of finished units available for sale is to be maintained at 25% of the next month's estimated sales. On April 1, there were 12,000 units on hand. There is no work in process at the end of any month. Each unit of finished product requires the use of five units of materials. Materials are to be carried in inventory in an amount equal to one-third of the expected production of the coming month. Beginning inventory on April 1 of the current year was 54,167 units of material.
a. provide production budget (in units) for the first four months of the period. Round amounts to the nearest unit.
b. proovide a materials purchases budget (in units of materials) for the second quarter of the coming year. Round amounts to the nearest unit.
Please include formulas
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn