Question

Send to Gradebook <Prev Question 3 /4.5 anting View Policies ates Current Attempt in Progress ons On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Support Sales units: First quarter 5,400; second quarter 7,000; third quarter 7,600. Ending raw materials inventory: 40 % of the next quarter's production requirements. Ending finished goods inventory: 25 % of the next quarter's expected sales units. Third-quarter production: 7,840 units. The ending raw materlals and finishod goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020, 4 pounds of raw m als are required to make each unit of finished goods. Raw materlals purchased are expected to cost $6 per pound. (a) Prepare a production budget by quarters for the 6-month period ended June 30, 2020. HARDIN COMPANY Production Budget Quarter Six Months MacBook Air

Answer 1

Production Budget is as prepared below:

Hardin Company
Production Budget
Fox six month ending June 30,2020
	Quarter
Particulars	1	2	Six Months
Total Sales	5,400	7,000	12,400
Add: Desired Ending inventory	1,750	1,900	1,900
Total needs	7,150	8,900	14,300
Less: beginning merchandise inventory	1,350	1,750	1,350
Required purchase	5,800	7,150	12,950