Fuqua Company's sales budget projects unit sales of part 1982 of 10.100 units in January 12.100 units in February, and 13.500 units in March. Each unit of part 1982 requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2019 Prepare a production budget for January and February 2020 FUQUA COMPANY Production Budget January February
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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![Fuqua Company's sales budget projects unit sales of part 1982 of 10.100 units in January 12.100 units in February, and 13.500 units in March. Each unit of part 1982 requires 3 pounds of
materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods
inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2019.
Prepare a production budget for January and February 2020
FUQUA COMPANY
Production Budget
January
February](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf3e9cd5-0961-4cae-908d-e5a1e04db372%2F0bdb1061-8979-4acb-9092-53c069e873e6%2Fg3bq0wd_processed.jpeg&w=3840&q=75)
![Prepare a direct materials budget for January 2020.
FUQUA COMPANY
Direct Materials Budget
January
‒‒‒‒‒‒‒](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf3e9cd5-0961-4cae-908d-e5a1e04db372%2F0bdb1061-8979-4acb-9092-53c069e873e6%2F2sroy0o_processed.jpeg&w=3840&q=75)
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