Question

I could use help with the red x’s

esi iees Pargo Company is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct

Answer 1

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Let me know in case you face any issue: Answers to red are highlighed in yellow:

Although naming convention of options in drop is not shared, but used the common naming convention Solution: Production Budget Particulars Expected Unit sales Add: Desired Ending finished goods invento Total Requirement or need Less: Beginning Finished goods inventory Budgeted product in units OR units to be produced 4 418000 513000 475000 494000 128250 118750 123500 114950 546250 631750 598500 608950 104500 128250 118750 123500 485450 Year 441750 503500 479750 1910450 Direct Material Budget Particulars Units to be produced Direct Material per unit Direct Material in pounded Add: Desired Ending Direct Material Total Direct Material requirement or need Less: Beginning Direct Materials Direct Material purchases 4 441750 503500 479750 485450 2 883500 1007000 959500 970900 100700 95950 97090 49600 984200 1102950 1056590 1020500 50 97090 895850 1002250 960640 923410 Year 2 2 2 88350 100700 959