Question

SH Can Read 40 P. X S Principle of MicroeconomX Microsoft Edge help & lex + https://ezto.mheducation.com/ext/map/index.html?con=con&external_browser=0&launchUrl=https%253A%25... * eck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to questio a. The finished goods inventory on hand at the end of each month must equal 2,000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 15,400 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 102,000 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. July August September October November December Budgeted Unit Sales 67, e80 72,eee 82,800 62,eee 52,eee 42,880 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total. < Prev 15 of 15 !!! Next O II E e to search

Answer 1

(1) Statement showing production budget. Product Supermix

Discription	July	August	September	October
Budgeted Sales	67,000	72,000	82,000	62,000
Add:Desired ending inventory	16,400	18,400	14,400	12,400
Total Needs	83,400	90,400	96,400	74,400
Less: Begininng inventory	15,400	16,400	18,400	14,400
Required Production (units)	68,000	74,000	78,000	60,000

(2) . Direct material Purchase Budget

Particulars	July.	August	September	Totals.
Required production	68,000	74,000	78,000	220,000
Material H300, per unit	3cc	3cc	3cc	3cc
Raw material needed in cc	204,000	222,000	234,000	660,000
Add: desired ending inventory	111,000	117,000	90,000	318,000
Total Requirements	315,000	339,000	324,000	978,000
Less: beginning inventory	102,000	111,000	117,000	330,000
Material to be purchase (cc)	213,000	228,000	207,000	648,000