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
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
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
Transcribed Image Text: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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