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Lily Company's sales budget projects unit sales of part 1982 of 11.000 units in January 12,600 units in February, and 14.900 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $2 per pound. Lily 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, 2021. (a) Prepare a production budget for January and February 2022 LILY COMPANY Production Budget January February

Lily Company's sales budget projects unit sales of part 1982 of 11.000 units in January 12,600 units in February, and 14.900 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $2 per pound. Lily 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, 2021. (a) Prepare a production budget for January and February 2022 LILY COMPANY Production Budget January February

FINANCIAL ACCOUNTING
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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Lily Company's sales budget projects unit sales of part 1982 of 11.000 units in January 12,600 units in February, and 14.900 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $2 per pound. Lily 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, 2021. (a) Prepare a production budget for January and February 2022 LILY COMPANY Production Budget January February
Transcribed Image Text:Lily Company's sales budget projects unit sales of part 1982 of 11.000 units in January 12,600 units in February, and 14.900 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $2 per pound. Lily 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, 2021. (a) Prepare a production budget for January and February 2022 LILY COMPANY Production Budget January February
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