Gertrude Products expects the following sales of its single product: Units June July 6,280 6,780 August 7,480 September 8,080 October 9,080 Required Gertrude has an ending finished goods inventory policy of 10% of the next month's sales needs. Each unit requires 5 pounds of Chemical A and 14 pounds of Chemical B. July 1 materials inventory includes 8,600 pounds of Chemical A and 76,000 pounds of Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 20% of next month's production needs and a Chemical B inventory equal to 100% of next month's production needs. a. Prepare a production budget for Gertrude Products for the quarter ending September 30.
Gertrude Products expects the following sales of its single product: Units June July 6,280 6,780 August 7,480 September 8,080 October 9,080 Required Gertrude has an ending finished goods inventory policy of 10% of the next month's sales needs. Each unit requires 5 pounds of Chemical A and 14 pounds of Chemical B. July 1 materials inventory includes 8,600 pounds of Chemical A and 76,000 pounds of Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 20% of next month's production needs and a Chemical B inventory equal to 100% of next month's production needs. a. Prepare a production budget for Gertrude Products for the quarter ending September 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Problem 8-109 (Algo) [LO 8-3b, 8-3c]
Gertrude Products expects the following sales of its single product:
Units
June
July
6,280
6,780
August
7,480
September
8,080
October
9,080
Required
Gertrude has an ending finished goods inventory policy of 10% of the next month's sales needs. Each unit requires 5 pounds of
Chemical A and 14 pounds of Chemical B. July 1 materials inventory includes 8,600 pounds of Chemical A and 76,000 pounds of
Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 20% of next month's production needs and a Chemical B
inventory equal to 100% of next month's production needs.
a. Prepare a production budget for Gertrude Products for the quarter ending September 30.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2072518-1652-4aee-80fa-00e43a490ce1%2F5202bc63-a64a-46d5-ba6d-4858449a6c4c%2F5xpj2gu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 8-109 (Algo) [LO 8-3b, 8-3c]
Gertrude Products expects the following sales of its single product:
Units
June
July
6,280
6,780
August
7,480
September
8,080
October
9,080
Required
Gertrude has an ending finished goods inventory policy of 10% of the next month's sales needs. Each unit requires 5 pounds of
Chemical A and 14 pounds of Chemical B. July 1 materials inventory includes 8,600 pounds of Chemical A and 76,000 pounds of
Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 20% of next month's production needs and a Chemical B
inventory equal to 100% of next month's production needs.
a. Prepare a production budget for Gertrude Products for the quarter ending September 30.
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