Question

On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: First quarter 6,000; second quarter 6,900; third quarter 7,400. 40% of the next quarter's production requirements Ending raw materials inventory: Ending finished goods inventory: 25% of the next quarter's expected sales units. 7,840 units. Third-quarter production: The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 4 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound. (a) Your answer is partially correct. Prepare a production budget by quarters for the 6-month period ended June 30, 2020. HARDIN COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter Six Months 1 2 Expected Unit Sales 6000 6600 Add Desired Ending Finished Goods Unit 1650 1850 7650 Total Required Units 8450 Beginning Finished Goods Unit Less 1500 1650 Required Production Units 6150 6800 12950

Answer 1

Solution - Production Budget SIR months Expected sales Add: Desired Cl. Stock Toral Rego units less: Beg. f goods Reg. Production units 6000 1725 7725 (1500) 6225 Q2 6900 1850 8750 (1725) 7025 13. 250 9P CamScanner