Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 380, 360, 432, 392, and 460 respectively. The company' s policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first quarter. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter.

Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 380, 360, 432, 392, and 460 respectively. The company' s policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first quarter. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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