Braham's Bottling Company sells fruit-flavoured colas. Estimated sales in cartons for September, October, and November are 1,000, 3,000, and 5,000, respectively. The selling price is forecast at $5 per carton. The company requires that ending finished goods inventory be 20% of the next month's sales. Finished goods inventory was 500 units on September 1. Each carton requires 12 mL of fruit syrup and 130 mL of carbonated water. Ending direct materials inventory is 10% of the next month's production needs. September 1 direct materials inventory met that requirement.
Required:
A. Calculate the budgeted revenue for September.
B. Calculate the budgeted revenue for November.
C. Calculate the production in September (in cartons).
D. Calculate the production in October (in cartons).
E. Calculate the purchases of syrup in September (in mL).
F. Calcualte the purchases of carbonated water in September (in mL).

Question

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The Answer of Braham's Bottling Company sells fruit-flavoured colas. Estimated sales in cartons for September, October, and November are 1,000, 3,000, and 5,000, respectively. The selling price is forecast at $5 per carton. The company requires that ending finished goods inventory be 20% of the next month's sales. Finished goods inventory was 500 units on September 1. Each carton requires 12 mL of fruit syrup and 130 mL of carbonated water. Ending direct materials inventory is 10% of the next month's production needs. September 1 direct materials inventory met that requirement.
Required:
A. Calculate the budgeted revenue for September.
B. Calculate the budgeted revenue for November.
C. Calculate the production in September (in cartons).
D. Calculate the production in October (in cartons).
E. Calculate the purchases of syrup in September (in mL).
F. Calcualte the purchases of carbonated water in September (in mL).

Braham's Bottling Company Sells Fruit-Flavoured Colas