Question: Question 2 (10 marks) A sales budget is given below for one of the products manufactured by the Qui July 25,000 units August 40 000

 Question 2 (10 marks) A sales budget is given below for

one of the products manufactured by the Qui July 25,000 units August

Question 2 (10 marks) A sales budget is given below for one of the products manufactured by the Qui July 25,000 units August 40 000 units September 65,00 0 units October 45.000 units November 35,000 units December 30,000 units The inventory of finished goods at the end of each month must equal 20% of th month's sales. However, on June 30 the finished goods inventory totalled only units. Each unit of product requires three pounds of specialized material. Since the production of this specialized material by Quick's suppliers is sometimes irregu company has a policy of maintaining an ending inventory at the end of each mi equal to 30% of the next month's production needs. This requirement had beer July 1 of the current year. Required: Prepare a budget showing the quantity of material to be purchased each and September and in total for the quarter. (3 marks for July, 3 marks for September and 1 mark for total)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!