Case Study 2 Cariman Limited is a manufacture of special plant pots. Cariman has the following budgeted sales for the next six-month period: Month Unit Sales June 45,000 July 60,000 August 105,000 September 75,000 October 90,000 November 60,000 There were 15,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five kilograms of materials are required for each unit produced. Each kilogram of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 7,500 kilograms. Required: 1. Prepare production budgets in units for July, August, and September.
Case Study 2 Cariman Limited is a manufacture of special plant pots. Cariman has the following budgeted sales for the next six-month period: Month Unit Sales June 45,000 July 60,000 August 105,000 September 75,000 October 90,000 November 60,000 There were 15,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five kilograms of materials are required for each unit produced. Each kilogram of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 7,500 kilograms. Required: 1. Prepare production budgets in units for July, August, and September.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Case Study 2 Cariman Limited is a manufacture of special plant pots. Cariman has the following budgeted sales for the next six-month period: Month Unit Sales June 45,000 July 60,000 August 105,000 September 75,000 October 90,000 November 60,000 There were 15,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five kilograms of materials are required for each unit produced. Each kilogram of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 7,500 kilograms.
Required: 1. Prepare production budgets in units for July, August, and September.
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