Birdfeeders Unlimited makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores. $15Sales price per birdfeeder 1.5Board feet of wood required for each birdfeeder $4Cost per board foot (actual) 10%Desired ending wood inventory stated as a percentage of next month’s production requirements 20%Desired ending finished goods inventory (finished birdfeeders) stated as a percentage of next month’s sales $550,000Total cost of direct materials purchases in December 45% of direct materials purchases are paid in the month of purchase 55%of direct materials purchases are paid in the month after purchase Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter UnitsOctober actual sales (prior year)November actual sales (prior year)December actual sales (prior year)January projected sales92,00085,00078,00080,00090,000February projected salesMarch projected sales95,000April projected sales105,000

Production budget of the business means how many units are budgeted to be produced in the comin…

Answered: Birdfeeders Unlimited makes backyard…

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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Birdfeeders Unlimited makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores.
	$15	Sales price per birdfeeder
	1.5	Board feet of wood required for each birdfeeder
	$4	Cost per board foot (actual)
	10%	Desired ending wood inventory stated as a percentage of next month’s production requirements
	20%	Desired ending finished goods inventory (finished birdfeeders) stated as a percentage of next month’s sales

	$550,000	Total cost of direct materials purchases in December
	45%	of direct materials purchases are paid in the month of purchase
	55%	of direct materials purchases are paid in the month after purchase

Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter

Units
October actual sales (prior year)
November actual sales (prior year)
December actual sales (prior year)
January projected sales
92,000
85,000
78,000
80,000
90,000
February projected sales
March projected sales
95,000
April projected sales
105,000

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