Lubriderm Corporation has the following budgeted sales for the next six-month period:
There were 30,000 units of finished goods in inventory at the beginning of June.Plans are to have an inventory of finished products that equal 20 percent of the unit sales for the next month.Five kilograms of materials are required for each unit produced.Each kilogram of material costs $8.Inventory levels for materials are equal to 30 percent of the needs for the next month.Materials inventory on June 1 was 15,000 kilograms.Required:
a.Prepare production budgets in units for July, August, and September.
b.Prepare a purchases budget in kilograms for July, August, and September, and give total purchases in both kilograms and dollars for each month.

Question

Lubriderm Corporation has the following budgeted sales for the next six-month period:
  There were 30,000 units of finished goods in inventory at the beginning of June.Plans are to have an inventory of finished products that equal 20 percent of the unit sales for the next month.Five kilograms of materials are required for each unit produced.Each kilogram of material costs $8.Inventory levels for materials are equal to 30 percent of the needs for the next month.Materials inventory on June 1 was 15,000 kilograms.Required:
a.Prepare production budgets in units for July, August, and September.
b.Prepare a purchases budget in kilograms for July, August, and September, and give total purchases in both kilograms and dollars for each month.

Quizplus · Accepted Answer

The Answer of Lubriderm Corporation has the following budgeted sales for the next six-month period:
  There were 30,000 units of finished goods in inventory at the beginning of June.Plans are to have an inventory of finished products that equal 20 percent of the unit sales for the next month.Five kilograms of materials are required for each unit produced.Each kilogram of material costs $8.Inventory levels for materials are equal to 30 percent of the needs for the next month.Materials inventory on June 1 was 15,000 kilograms.Required:
a.Prepare production budgets in units for July, August, and September.
b.Prepare a purchases budget in kilograms for July, August, and September, and give total purchases in both kilograms and dollars for each month.

Lubriderm Corporation Has the Following Budgeted Sales for the Next