Question: please explain how you find the desired ending inventory for June. I have tried everything I can think of. Symphony Electronics produces wireless speakers for

please explain how you find the desired ending inventory for June. I have tried everything I can think of.
Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 16,300 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,000 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,500 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Budgeted Sales in Units 126,000 148,000 200,000 101,000 60,700 Required: 1. Prepare a production budget for the All Weather for April, May, June and July. Budgeted sales (units) Add: Desired ending inventory Total needs Less: Beginning inventory Required production April 126,000 31,100 157,100 28,000 129,100 May 148,000 36,300 184,300 31,100 153,200 June 200,000 26,400 226,400 36,300 190, 100 July 101,000 22,3701 123,370 26,400 96,970 2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total. April May June Second Quarter 472,400 129,100 153,200 190,100 4 4 4 4 760,400 1,889,600 Required production (units) XL 12 components needed per unit Production needs Add: Desired ending inventory Total XL 12 needs Less: Beginning inventory Material XL 12 purchases 516,400 122,560 638,960 98,500 540,460 612,800 152,080 764,880 760,400 1,889,600 764,880 760,400 1,889,600
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