Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model...
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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 16,200 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,200 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 97,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: Budgeted Sales in Units 117,000 April May June July August 151,000 208,000 119,000 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 Answer is complete and correct. April 117,000 May June July 151,000 208,000 119,000 31,300 37,000 28,100 22,270 148,300 188,000 236,100 141,270 0 28,200 120,100 31,300 156,700 37,000 28,100 199,100 113,170 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. Answer is not complete. April May June Second Quarter Required production (units) 120,100 XL 12 components needed per unit 156,700 4 199,100475,900 4 4 Production needs 480,400 626,800 796,400 1,903,600 Add: Desired ending inventory 125,360 159,280 95,200 Total XL 12 needs 605,760 786,080 891,600 1,903,600 Less: Beginning inventory Material XL 12 purchases 605,760 786,080 891,600 1,903,600 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 16,200 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,200 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 97,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: Budgeted Sales in Units 117,000 April May June July August 151,000 208,000 119,000 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 Answer is complete and correct. April 117,000 May June July 151,000 208,000 119,000 31,300 37,000 28,100 22,270 148,300 188,000 236,100 141,270 0 28,200 120,100 31,300 156,700 37,000 28,100 199,100 113,170 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. Answer is not complete. April May June Second Quarter Required production (units) 120,100 XL 12 components needed per unit 156,700 4 199,100475,900 4 4 Production needs 480,400 626,800 796,400 1,903,600 Add: Desired ending inventory 125,360 159,280 95,200 Total XL 12 needs 605,760 786,080 891,600 1,903,600 Less: Beginning inventory Material XL 12 purchases 605,760 786,080 891,600 1,903,600
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