Production and Materials Purchases Budgets DeVaris Corporation’s budget calls for the following sales for next year:
Quarter 1 | 45,000 units | Quarter 3 | 34,000 units |
Quarter 2 | 38,000 units | Quarter 4 | 48,000 units |
Each unit of the product requires 3 pounds of direct material. The company’s policy is to begin each quarter with an inventory of the product equal to 10 percent of that quarter’s sales requirements and an inventory of direct materials equal to 20 percent of that quarter’s direct materials requirements for production.
Required Determine the production and materials purchases budgets for the second quarter.
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