Question

Exercise 23-6 (Part Level Submission) On January 1, 2017, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 5,600; second quarter 6,300; third quarter 7,000 40% of the next quarter's production requirements 25% of the next quarter's expected sales units 7,820 units The ending raw maferials and finished goods inventories at December 31, 2016, follow the same percentage relationships to production and sales that occur in 2017. 5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. Prepare a production budget by quarters for the 6-month period ended June 30, 2017 HARDIN COMPANY Production Budget Quarter Six Months

Answer 1

Ans-(a)- HARDIN COMPANY

Production Budget

For Six Month Ending June 30,2017

Particulars	First Quarter	Second Quarter	Six Months
Expected units	5,600	6,300	11,900
Add: Desired ending finished goods	1,575 (6,300*25%)	1,750 (7,000*25%)	3,325
	7,175	8,050	15,225
Less: Desired opening finished goods	1,400 (5,600*25%)	1,575 (6,300*25%)	2,975
Required Production Units	5,775	6,475	12,250