A sales budget for the first five months of 2021 is given on a certainproduct line manufactured by Boots Styles, Inc.Sales budget in unitsJanuary157,000February162,000March204,000AprilMay223,000245,000The inventory of finished products at the end of each month is equal to20% of the sales estimate for the next month. This requirement is expected tobe met by Jan. 1. No work is in process at the end of each month.Each unit of product requires two types of raw materials as follows:Material A2 unitMaterial B6 unitsThe estimated cost of Material A is P5.00 per unit, and the estimated costof Material B is PO.60 per unit. Materials equal to 30% of next month'sproduction needs are to be on hand at the end of each month. This requirementis expected to be met on Jan. 1.REQUIRED:1. Prepare a production budget for the first quarter of 2021 broken down bymonths. Include a total column.2. Prepare a purchases budget for each type of raw materials also for the firstquarter of 2021 broken down into months. Include a total colum.Boots Style, Inc.Production BudgetFor the First Quarter of 2021ExtraJan.Feb.MarchTotalAprilSales budgetAdd: Ending inventory (20%)Total requirementsLess: Beginning inventoryProduction budget

Basic Information The question is related to budgetory control. The sales in units for six months…

1. Prepare a production budget for the first quarter of 2021 broken down by months. Include a total column. 2. Prepare a purchases budget for each type of raw materials also for the first quarter of 2021 broken down into months. Include a total colum.

1. Prepare a production budget for the first quarter of 2021 broken down by months. Include a total column. 2. Prepare a purchases budget for each type of raw materials also for the first quarter of 2021 broken down into months. Include a total colum.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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