Forrest Company manufactures phone chargers and has a policy that ending inventory should equal 10% of the next month'sbudgeted unit sales. October's ending inventory equals 40,000 units. November and December sales are budgeted to be 400,000units and 350,000 units, respectively.Prepare the production budget for November.FORREST COMPANYProduction BudgetDesired ending inventory unitsTotal required unitsUnits to produceNovember muyun VITUSVIIMiami Solar manufactures solar panels for industrial use. The company budgets production of 5,000 units (solar panels) inJuly and 5,300 units in August.Each unit requires 3 pounds of direct materials, which cost $6 per pound. The company's policy is to maintain direct materialsinventory equal to 30% of the next month's direct materials requirement. As of June 30, the company has 4,500 pounds of directmaterials in inventory. Prepare the direct materials budget for July.Units to produceMIAMI SOLARDirect Materials BudgetMaterials needed for production (pounds)Total materials required (pounds)Materials to purchase (pounds)Cost of direct materials purchasesJuly5,000

Budgeting is a process of finding requirements of future. There are various types of budget such as…

Forrest Company manufactures phone chargers and has a policy that ending inventory should equal 10% of the next month's budgeted unit sales. October's ending inventory equals 40,000 units. November and December sales are budgeted to be 400,000 units and 350,000 units, respectively. Prepare the production budget for November. FORREST COMPANY Production Budget Desired ending inventory units Total required units Units to produce November

Forrest Company manufactures phone chargers and has a policy that ending inventory should equal 10% of the next month's budgeted unit sales. October's ending inventory equals 40,000 units. November and December sales are budgeted to be 400,000 units and 350,000 units, respectively. Prepare the production budget for November. FORREST COMPANY Production Budget Desired ending inventory units Total required units Units to produce November

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 2E: The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units....

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The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
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