Asv1 b. Prepare a direct materials purchases budget for Component Z for quarter ending December 31. Assume a desired ending inventoryfor Component Z of 11,000 units at December 31, and a constant unit cost of $4 per lb.Crest ProductsDirect Materials Purchases Budget (Component Z)For the Quarter Ending December 31OctoberNovemberBudgeted production (units)Direct materials requirements per unitTotal direct material neededPlus: Ending inventoryLess: Beginning inventoryTotal purchases of Component ZCost of Component ZBudgeted cost of Component Z purchases(9,846)(12,534)December(13,416)$Total11,0009,846720,536 Crest Products expects the following sales of its single product:SeptemberOctoberNovemberDecemberJanuaryRequired:Units20,90015,30019,00025,30015,500Crest has an ending finished goods inventory policy of 30% of the next month's sales needs. September 1 inventory is projected to be5,200 units. Each finished unit requires 2 units of Component X and 3 units of Component Z. August 1 materials inventory includes3,000 units of Component X and 173,000 units of Component Z. Crest desires to maintain a Component X inventory equal to 10% ofnext month's production needs and a Component Z inventory equal to 20% of next month's production needs.a. Prepare a production budget for Crest for the quarter ending December 31.Crest ProductsProduction BudgetFor the Quarter Ending December 31October NovemberBudgeted unit salesPlus: Ending finished goods inventoryLess: Beginning finished goods inventoryBudgeted production (units)DecemberTotal

Name: Asv1 b. Prepare a direct materials purchases budget for Component Z fo
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Description: Asv1 b. Prepare a direct materials purchases budget for Component Z for quarter ending December 31. Assume a desired ending inventoryfor Component Z of 11,000 units at December 31, and a constant unit cost of $4 per lb.Crest ProductsDirect Materials

The production budget is referred as a detailed plan that outlines number of units the company needs…

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Crest Products expects the following sales of its single product: Units 20,900 15,300 19,000 25,300 15,500 September October November December January Required: Crest has an ending finished goods inventory policy of 30% of the next month's sales needs. September 1 inventory is projected to be 5,200 units. Each finished unit requires 2 units of Component X and 3 units of Component Z. August 1 materials inventory includes 3,000 units of Component X and 173,000 units of Component Z. Crest desires to maintain a Component X inventory equal to 10% of next month's production needs and a Component Z inventory equal to 20% of next month's production needs. a. Prepare a production budget for Crest for the quarter ending December 31. Crest Products Production Budget For the Quarter Ending December 31 October November Budgeted unit sales Plus: Ending finished goods inventory Less: Beginning finished goods inventory Budgeted production (units) December Total