Information about Roboto, a product sold by Roberts, Inc. is as follows: Each unit requires two pounds of material X37. Roberts is planning raw materials needs for the second quarter. Inventory requirements are as follows: a. The finished goods inventory on hand at the end of each month must be equal to 4,000 units plus 25% of the next month's sales. The finished goods inventory on March 31 is budgeted based on this requirement.
Information about Roboto, a product sold by Roberts, Inc. is as follows: Each unit requires two pounds of material X37. Roberts is planning raw materials needs for the second quarter. Inventory requirements are as follows: a. The finished goods inventory on hand at the end of each month must be equal to 4,000 units plus 25% of the next month's sales. The finished goods inventory on March 31 is budgeted based on this requirement.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Information about Roboto, a product sold by Roberts, Inc. is as follows:
Each unit requires two pounds of material X37. Roberts is planning raw materials needs for
the second quarter. Inventory requirements are as follows:
a.
b.
C.
The finished goods inventory on hand at the end of each month must be equal to 4,000
units plus 25% of the next month's sales. The finished goods inventory on March 31 is
budgeted based on this requirement.
The raw materials inventory on hand at the end of each month must be equal to one-half
of the following month's production needs for raw materials. The raw materials inventory
on March 31 for material X37 is budgeted based on this requirement.
A sales budget for Roboto for the second and third quarters of the year follows.
1.
The company maintains no work in process inventories.
April
May
June
July
August
September
3.
Required:
Budgeted Sales
in Units
45,000
55,000
75,000
40,000
25,000
15,000
Prepare a production budget for Roboto for the months April, May, June and July.
Prepare a direct materials budget showing the quantity of material X37 to be purchased
for April, May, June and for the quarter in total.
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