Bonita Company's sales budget projects unit sales of part 1982 of 9.000 units in January, 10,600 units in February, and 11.900 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $2 per pound. Bonita Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2021. (a) Prepare a production budget for January and February 2022. BONITA COMPANY Production Budget January February Prepare a direct materials budget for January 2022. BONITA COMPANY Direct Materials Budget $ January
Bonita Company's sales budget projects unit sales of part 1982 of 9.000 units in January, 10,600 units in February, and 11.900 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $2 per pound. Bonita Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2021. (a) Prepare a production budget for January and February 2022. BONITA COMPANY Production Budget January February Prepare a direct materials budget for January 2022. BONITA COMPANY Direct Materials Budget $ January
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bonita Company's sales budget projects unit sales of part 1982 of 9.000 units in January, 10,600 units in February, and 11.900 units in
March. Each unit of part 1982 requires 4 pounds of materials, which cost $2 per pound. Bonita Company desires its ending raw
materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20%
of the next month's expected unit sales. These goals were met at December 31, 2021.
(a)
Prepare a production budget for January and February 2022.
BONITA COMPANY
Production Budget
January
February
Prepare a direct materials budget for January 2022.
BONITA COMPANY
Direct Materials Budget
$
January
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