Prepare a production budget of finished goods by month and in total for the three-month period of
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Question:
- Prepare a production budget of finished goods by month and in total for the three-month period of January to March from the following information:
January | February | March | April | |
Sales in Units | 600,000 | 700,000 | 800,000 | 900,000 |
The end of month inventories of finished goods must equal 30% of the next month’s sales.
- The raw material requirement for production in question 1 is 2 kg of raw material per of unit of finished goods. The production budget of finished goods in April is 850,000 units. Use the answer of question 1 as the production budget of finished goods for January, February, and March. The end of month inventories of raw material must equal 20% of the next month’s needs of raw material. The cost of raw material is TK 5 per kg. Prepare a raw material purchase budget by month and in total for the three-month period of January to March.
Related Book For
Introduction to Operations and Supply Chain Management
ISBN: 978-0132747325
3rd edition
Authors: Cecil B. Bozarth, Robert B. Handfield
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