A sales budget for the first five months of 2021 is given on a certain product line manufactured by Boots Styles, Inc. Sales budget in units January February 157,000 162,000 March 204,000 April May 223,000 245,000 The inventory of finished products at the end of each month is equal to 20% of the sales estimate for the next month. This requirement is expected to be 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 A 2 unit Material B 6 units The estimated cost of Material A is P5.00 per unit, and the estimated cost of Material B is PO.60 per unit. Materials equal to 30% of next month's production needs are to be on hand at the end of each month. This requirement is expected to be met on Jan. 1. REQUIRED: 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. Boots Style, Inc. Production Budget For the First Quarter of 2021 Extra Jan. Feb. March Total Аpril Sales budget Add: Ending inventory (20%) Total requirements

A sales budget for the first five months of 2021 is given on a certain product line manufactured by Boots Styles, Inc. Sales budget in units January February 157,000 162,000 March 204,000 April May 223,000 245,000 The inventory of finished products at the end of each month is equal to 20% of the sales estimate for the next month. This requirement is expected to be 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 A 2 unit Material B 6 units The estimated cost of Material A is P5.00 per unit, and the estimated cost of Material B is PO.60 per unit. Materials equal to 30% of next month's production needs are to be on hand at the end of each month. This requirement is expected to be met on Jan. 1. REQUIRED: 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. Boots Style, Inc. Production Budget For the First Quarter of 2021 Extra Jan. Feb. March Total Аpril Sales budget Add: Ending inventory (20%) Total requirements

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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