Millet Corporation manufactures and sells stuff toys. She is busy with thethird and fourth quarters of 2021 at the moment. She asks your help to preparesome of these budgets:The sales budget in units is as follows:45,000 pieces70,000 piecesThird quarterFourth quarter It is decided that stuff toys inventories are to be 20,000 pieces at the endof the third quarter, and 5,000 pieces at the end of the fourth quarter. Theinventory at the start of the third quarter will consist of 8,000 stuff toys.Each stuff toy is packaged in a colorful cardboard box, and contains 2units of Material A and 5 units of Material B.The inventory of materials at the beginning of the third quarter will be:Boxes125,000 piecesMaterial A15,000 unitsMaterial B45,000 unitsThere are sufficient boxes on hand for both quarters; none will bepurchased during the two periods.Material A can be bought whenever needed and in any quantity desired.The starting inventory of 15,000 units is considered to be an ideal quantity.Material B must be purchased in quantities of 10,000 units, or multiplesof 10,000. It is desired that at the end of the third and fourth quarters, aminimum quantity of 30,000 units be on hand, or as close thereto as thestandard quantity will permit.REQUIRED:1. Prepare a production budget for the third and fourth quarters of 2021.2. Prepare a purchases budget for Material A and Material B for the third andfourth quarters of 2021.3. How manyboxes will be on hand at the end of the fourth quarter?

Budget: It is an estimated and effective way of the utilization of funds for the financial control…

It is decided that stuff toys inventories are to be 20,000 pieces at the end of the third quarter, and 5,000 pieces at the end of the fourth quarter. The inventory at the start of the third quarter will consist of 8,000 stuff toys. Each stuff toy is packaged in a colorful cardboard box, and contains 2 units of Material A and 5 units of Material B. The inventory of materials at the beginning of the third quarter will be: 125,000 pieces 15,000 units Вохes Material A Material B 45,000 units There are sufficient boxes on hand for both quarters; none will be purchased during the two periods. Material A can be bought whenever needed and in any quantity desired. The starting inventory of 15,000 units is considered to be an ideal quantity. Material B must be purchased in quantities of 10,000 units, or multiples of 10,000. It is desired that at the end of the third and fourth quarters, a minimum quantity of 30,000 units be on hand, or as close thereto as the standard quantity will permit. REQUIRED: 1. Prepare a production budget for the third and fourth quarters of 2021.

It is decided that stuff toys inventories are to be 20,000 pieces at the end of the third quarter, and 5,000 pieces at the end of the fourth quarter. The inventory at the start of the third quarter will consist of 8,000 stuff toys. Each stuff toy is packaged in a colorful cardboard box, and contains 2 units of Material A and 5 units of Material B. The inventory of materials at the beginning of the third quarter will be: 125,000 pieces 15,000 units Вохes Material A Material B 45,000 units There are sufficient boxes on hand for both quarters; none will be purchased during the two periods. Material A can be bought whenever needed and in any quantity desired. The starting inventory of 15,000 units is considered to be an ideal quantity. Material B must be purchased in quantities of 10,000 units, or multiples of 10,000. It is desired that at the end of the third and fourth quarters, a minimum quantity of 30,000 units be on hand, or as close thereto as the standard quantity will permit. REQUIRED: 1. Prepare a production budget for the third and fourth quarters of 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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