Question

Chapter 9 Assignment i Saved Problem 9-14 Production and Direct Materials Purchases Budgets (LO2] Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products, SuperStick, requires four kilograms of material D236 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter-July, August, and September. Peak sales of SuperStick occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements: points eBook a. The finished goods inventory on hand at the end of each month must be equal to 8,450 units plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 22,540 units. b. The raw materials inventory on hand at the end of each month must be equal to 40% of the following month's production needs for raw materials. The raw materials inventory on June 30 for material D236 is budgeted to be 130,800 kilograms. c. The company maintains no work in process inventories. Ask Print A sales budget for SuperStick for the last six months of the year follows: Budgeted Sales in Units July 60,900 August 75,450 September 105,900 October 53,450 November 30,450 December 15,180