ZuoTi.Pro
Question

Fuqua Company’s sales budget projects unit sales of part 198Z of 11,000 units in January, 12,600...

Fuqua Company’s sales budget projects unit sales of part 198Z of 11,000 units in January, 12,600 units in February, and 14,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $3 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2016.

Prepare a production budget for January and February 2017.

Prepare a direct materials budget for January 2017.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

a) Production Budget

January February
Sales unit 11000 12600
Add: Desired ending inventory 2520 2800
Total 13520 15400
Less: Beginning inventory -2200 -2520
Production unit 11320 12880

b) Direct material budget

January
Production Unit 11320
Raw material per unit 3
Raw material needed for production 33960
Add: Desired ending inventory (12880*3*40%) 15456
Total 49416
Less: Beginning inventory (11320*3*40%) -13584
Direct material purchase 35832
Cost per pound 3
Direct material purchase cost 107496
3 0
Add a comment
Know the answer?
Add Answer to:
Fuqua Company’s sales budget projects unit sales of part 198Z of 11,000 units in January, 12,600...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Fuqua Company’s sales budget projects unit sales of part 198Z of 10,100 units in January, 12,600...

    Fuqua Company’s sales budget projects unit sales of part 198Z of 10,100 units in January, 12,600 units in February, and 13,700 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2019....

  • Exercise 9-8 Fuqua Company's sales budget projects unit sales of part 198Z of 11,000 units in...

    Exercise 9-8 Fuqua Company's sales budget projects unit sales of part 198Z of 11,000 units in January, 12,600 units in February, and 14,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $3 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December...

  • Fuqua Company’s sales budget projects unit sales of part 198Z of 10,800 units in January, 12,700 units in February, and...

    Fuqua Company’s sales budget projects unit sales of part 198Z of 10,800 units in January, 12,700 units in February, and 13,200 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2016....

  • Fuqua Company's sales budget projects unit sales of part 198Z of 10,400 units in January, 13,000...

    Fuqua Company's sales budget projects unit sales of part 198Z of 10,400 units in January, 13,000 units in February, and 13,400 units in March. Each unit of part 198.Z requires 4 pounds of materials, which cost $3 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2016...

  • Exercise 23-8 Fuqua Company's sales budget projects unit sales of part 1987 of 11,000 units in...

    Exercise 23-8 Fuqua Company's sales budget projects unit sales of part 1987 of 11,000 units in January, 12,600 units in February, and 14,000 units in March. Each unit of part 1982 requires 3 pounds of materials, which cost $3 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December...

  • Fuqua Company's sales budget projects unit sales of part 1987 of 10,300 units in January, 12,600...

    Fuqua Company's sales budget projects unit sales of part 1987 of 10,300 units in January, 12,600 units in February, and units in March. Each unit of part 1987 requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to 10% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2019. Prepare a...

  • *Exercise 9-8 Fuqua Company's sales budget projects unit sales of part 198z of 10,700 units in...

    *Exercise 9-8 Fuqua Company's sales budget projects unit sales of part 198z of 10,700 units in January, 12,400 units in February, and 13,500 units in March. Each unit of part 198Z requires 2 pounds of materials, which cost $5 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December...

  • Monty Company’s sales budget projects unit sales of part 198Z of 10,400 units in January, 13,000...

    Monty Company’s sales budget projects unit sales of part 198Z of 10,400 units in January, 13,000 units in February, and 13,400 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $3 per pound. Monty Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2016....

  • Pina Company's sales budget projects unit sales of part 1987 of 10,700 units in January, 12,200...

    Pina Company's sales budget projects unit sales of part 1987 of 10,700 units in January, 12,200 units in February, and 13,000 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 per pound. Pina Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2016....

  • (CGA adapted) Prepare a production and a direct materials budget E9.8 (LO 2), AP Fuqua Company's...

    (CGA adapted) Prepare a production and a direct materials budget E9.8 (LO 2), AP Fuqua Company's sales budget projects unit sales of part 1982 of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT