Lubriderm Corporation has the following budgeted unit 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% of the unit sales for the next month.
Five pounds of materials are required for each unit produced.Each pound of material costs $8.Inventory levels for materials are equal to 30% of the needs for the next month.Materials inventory on June 1 was 15,000 pounds.
Required:
a.Prepare production budgets in units for July,August,and September.
b.Prepare a purchases budget in pounds for July,August,and September,and give total purchases in both pounds and dollars for each month.
Correct Answer:
Verified
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