Question

port 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 5,600, second quarter 6,300: third quarter 7.000. Ending raw materials inventory: 40% of the next quarter's production requirements. Endinghnished goods inventory: 25% of the next quarter's expected sales units. Third quarter production: 7.820 units. The ending raw materials and finished goods inventories at December 31, 2019 follow the same percentage relationships to production and sales that occur in 2020.5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound (a) ✓ Your answer is 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 L Expected Unit Sales Add Desired Ending Finished Goods Unit Total Required Units Less Beginning Finished Goods Unit Required Production Units 5600 1575 7175 14001 6500 1750 8050 -1575 . L 5775 12250

Answer 1

Direct material budget

For the ended of Six month

	Quarter 1	Quarter 2	Six month
Production Units	5775	6475
Raw material per unit	5	5
Raw material needed for production	28875	32375
Add: Desired ending inventory	12950	15640
Total	41825	48015
Less: Beginning inventory	-11550	-12950
Direct material purchase	30275	35065
Cost per pound	4	4
Direct material purchase cost	121100	140260	261360