Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 90,000 units. The following unit sales are budgeted during the rest of the year: second quarter, 450,000 units; third quarte 525,000 units; and fourth quarter, 475,000 units. Company policy calls for the ending finished goods inventory of a quarter to equal 20% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. ELECTRO COMPANY Production Budget Next period budgeted sales units Desired ending inventory units Total required units Second Quarter Third Quarter

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first
quarter at 90,000 units. The following unit sales are budgeted during the rest of the year: second quarter, 450,000 units; third quarter,
525,000 units; and fourth quarter, 475,000 units. Company policy calls for the ending finished goods inventory of a quarter to equal
20% of the next quarter's budgeted unit sales.
Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.
ELECTRO COMPANY
Production Budget
Next period budgeted sales units
Desired ending inventory units
Total required units
Units to produce
Second Quarter Third Quarter
Transcribed Image Text:Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 90,000 units. The following unit sales are budgeted during the rest of the year: second quarter, 450,000 units; third quarter, 525,000 units; and fourth quarter, 475,000 units. Company policy calls for the ending finished goods inventory of a quarter to equal 20% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. ELECTRO COMPANY Production Budget Next period budgeted sales units Desired ending inventory units Total required units Units to produce Second Quarter Third Quarter
Rida Incorporated is preparing its direct materials budget for the second quarter. It budgets production of 240,000 units in the second
quarter and 52,500 units in the third quarter. Each unit requires 0.60 pound of direct material, priced at $175 per pound. Starting with
the second quarter, the company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter's
budgeted direct materials required. Raw material inventory is 43,200 pounds at the beginning of the second quarter.
Prepare a direct materials budget for the second quarter. (Enter "per unit" answers in two decimal places.)
Units to produce
RIDA INCORPORATED
Direct Materials Budget
Materials needed for production (pounds)
Total materials required (pounds)
Materials to purchase (pounds)
Cost of direct materials purchases
Second Quarter
240,000 units
Transcribed Image Text:Rida Incorporated is preparing its direct materials budget for the second quarter. It budgets production of 240,000 units in the second quarter and 52,500 units in the third quarter. Each unit requires 0.60 pound of direct material, priced at $175 per pound. Starting with the second quarter, the company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter's budgeted direct materials required. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Prepare a direct materials budget for the second quarter. (Enter "per unit" answers in two decimal places.) Units to produce RIDA INCORPORATED Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases Second Quarter 240,000 units
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