Principles of Accounting 2 Raw material and Production Budgets
Chapter7-1
- Young Co. makes computers. They have 850 computers on hand Jan 1st. Their goal is to have 11% of next month’s sales on hand at the end of each month. Sales budget is shown below:
Jan sales, units 20,000
Feb sales, units 32,000
Mar sales, units 40,000
What is the production budget for February (in units)?
Enter as a whole number, no commas.
- Young Co. makes computers. Their goal is to have 3% of next month’s sales on hand at the end of each month. Sales budget is shown below:
Jan sales, units 20,000
Feb sales, units 34,000
Mar sales, units 40,000
What is the production budget for January (in units)?
Enter as a whole number, no commas.
- Karen Partners makes jump ropes. Their production budget is shown below:
Jan production, units 300,000
Feb production, units 355,000
Mar production, units 400,000
Each jump rope requires 2.1 feet of braided cord. Management wants enough cord to meet 4% of next month’s production needs. Cord costs $1.63 per foot.
What is the material budget for braided cord for January (in dollars)?
Enter as a whole number, no commas and no dollar signs.
4.Easy Farms Inc. makes tillers for small farms. Their sales budget is shown below:
Sep sales, units 10,000
Oct sales, units 45,000
Nov sales, units 40,000
Management want enough tillers on hand to meet 10% of next month’s sales.
Each tiller requires 8 round blades. Management wants enough blades to meet 7% of next month’s production needs.
What is the material budget for blades for September (in blades)?
Enter as a whole number, no commas and no dollar signs.
5.Easy Farms Inc. makes tillers for small farms. Their sales budget is shown below:
Sep sales, units 10,000
Oct sales, units 55,000
Nov sales, units 40,000
Management want enough tillers on hand to meet 10% of next month’s sales.
Each tiller requires 9 round blades. Management wants enough blades to meet 2% of next month’s production needs. Each blade cost $7.40.
What is the material budget for blades for September (in dollars)?
Enter as a whole number, no commas and no dollar signs.
- Mowers Inc. makes mowers for commercial landscapers. Their sales budget is shown below:
Sep sales, units 10,000
Oct sales, units 35,000
Nov sales, units 40,000
Management want enough mowers on hand to meet 10% of next month’s sales.
Each mower requires 7 cutting blades. Management wants enough blades to meet 3% of next month’s production needs.
What is the material budget for blades for September (in units)?
Enter as a whole number, no commas and no dollar signs.
