Exercise 4-26 Millet Corporation manufactures and sells stuff toys. She is busy with the third and fourth quarters of 2021 at the moment. She asks your help to prepare some of these budgets: The sales budget in units is as follows: Third quarter 45,000 pieces 70,000 pieces 140 Fourth quarter It is decided that stuff toys inventories are to be 20,000 picces at the end of the third quarter, and 5,000 pieces at the end of the fourth quarter. The inventory at the start of the third quarter will consist of 8,000 stuff toys. Each stuff toy is packaged in a colorful cardboard box, and contains 2 units of Material A and 5 units of Material B. The inventory of materials at the beginning of the third quarter will be: Boxes Material A 125,000 pieces 15,000 units Material B 45,000 units will be There are suffficient boxes on hand for both quarters; purchased during the two periods. Material A can be bought whenever needed and in any quantity desired. The starting inventory of 15,000 units is considered to be an ideal quantity. Material B must be purchased in quantities of 10,000 units, or multiples of 10,000. It is desired that at the end of the third and fourth quarters, a minimum quantity of 30,000 units be on hand, or as close thereto as the standard quantity will permit. REQUIRED: 1. Prepare a production budget for the third and fourth quarters of 2021. 2. Prepare a purchases budget for Material A and Material B for the third and fourth quarters of 2021. 3. How many boxes will be on hand at the end of the fourth quarter? Millet Corporation Production Budget For the Third & Fourth Quarters of 2021 3r Quarter 4 Quarter Sales budget Add: Ending inventory Total requirements Less: Beginning inventory Production budget
Exercise 4-26 Millet Corporation manufactures and sells stuff toys. She is busy with the third and fourth quarters of 2021 at the moment. She asks your help to prepare some of these budgets: The sales budget in units is as follows: Third quarter 45,000 pieces 70,000 pieces 140 Fourth quarter It is decided that stuff toys inventories are to be 20,000 picces at the end of the third quarter, and 5,000 pieces at the end of the fourth quarter. The inventory at the start of the third quarter will consist of 8,000 stuff toys. Each stuff toy is packaged in a colorful cardboard box, and contains 2 units of Material A and 5 units of Material B. The inventory of materials at the beginning of the third quarter will be: Boxes Material A 125,000 pieces 15,000 units Material B 45,000 units will be There are suffficient boxes on hand for both quarters; purchased during the two periods. Material A can be bought whenever needed and in any quantity desired. The starting inventory of 15,000 units is considered to be an ideal quantity. Material B must be purchased in quantities of 10,000 units, or multiples of 10,000. It is desired that at the end of the third and fourth quarters, a minimum quantity of 30,000 units be on hand, or as close thereto as the standard quantity will permit. REQUIRED: 1. Prepare a production budget for the third and fourth quarters of 2021. 2. Prepare a purchases budget for Material A and Material B for the third and fourth quarters of 2021. 3. How many boxes will be on hand at the end of the fourth quarter? Millet Corporation Production Budget For the Third & Fourth Quarters of 2021 3r Quarter 4 Quarter Sales budget Add: Ending inventory Total requirements Less: Beginning inventory Production budget
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Exercise 4-26
Millet Corporation manufactures and sells stuff toys. She is busy with the
third and fourth quarters of 2021 at the moment. She asks your help to prepare
some of these budgets:
The sales budget in units is as follows:
Third quarter
Fourth quarter
45,000 pieces
70,000 pieces
140
It is decided that stuff toys inventories are to be 20,000 picces at the end
of the third quarter, and 5,000 pieces at the end of the fourth quarter. The
inventory at the start of the third quarter will consist of 8,000 stuff toys.
Each stuff toy is packaged in a colorful cardboard box, and contains 2
units of Material A and 5 units of Material B.
The inventory of materials at the beginning of the third quarter will be:
125,000 pieces
15,000 units
Воxes
Material A
Material B
45,000 units
There are sufficient boxes on hand for both quarters; none will be
purchased during the two periods.
Material A can be bought whenever needed and in any quantity desired.
The starting inventory of 15,000 units is considered to be an ideal quantity.
Material B must be purchased in quantities of 10,000 units, or multiples
of 10,000. It is desired that at the end of the third and fourth quarters, a
minimum quantity of 30,000 units be on hand, or as close thereto as the
standard quantity will permit.
REQUIRED:
1. Prepare a production budget for the third and fourth quarters of 2021.
2. Prepare a purchases budget for Material A and Material B for the third and
fourth quarters of 2021.
3. How many boxes will be on hand at the end of the fourth quarter?
Millet Corporation
Production Budget
For the Third & Fourth Quarters of 2021
3 Quarter
4h Quarter
Sales budget
Add: Ending inventory
Total requirements
Less: Beginning inventory
Production budget
Transcribed Image Text:Millet Corporation
Purchases Budget- Material A
For the Third & Fourth Quarters of 2021
3rd
Quarter
4th
Quarter
Production budget
x No. of units required
Production requirements
Add: Ending inventory
Total requirements
Less: Beginning inventory
Purchases budget (units)
2
2
Millet Corporation
Purchases Budget- Material B
For the Third & Fourth Quarters of 2021
3rd
Quarter
4th
Quarter
Production budget
x No. of units required
Production requirements
Add: Ending inventory
Total requirements
Less: Beginning inventory
Purchases budget (units)
5
5
Воxes:
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