Mindc Exercise 4-25 A sales budget for the first five months of 2021 is given on a certain product line manufactured by Boots Styles, Inc. January February March Sales budget in units 157,000 162,000 204,000 223,000 245,000 April May The inventory of finished products at the end of each month is equal to 20% of the sales estimate for the next month. This requirement is expected to be met by Jan. 1. No work is in process at the end of each month. Each unit of product requires two types of raw materials as follows: Material A 2 unit Material B 6 units The estimated cost of Material A is P5.00 per unit, and the estimated cost of Material B is PO.60 per unit. Materials equal to 30% of next month's production needs are to be on hand at the end of each month. This requirement is expected to be met on Jan. 1. REQUIRED: 1. Prepare a production budget for the first quarter of 2021 broken down by months. Include a total column. 2. Prepare a purchases budget for each type of raw materials also for the first quarter of 2021 broken down into months. Include a total colum. Boots Style, Inc. Production Budget For the First Quarter of 2021 Extra Jan. Feb. March Total Sales budget Add: Ending inventory (20%) Total requirements Less: Beginning inventory Production budget April
Mindc Exercise 4-25 A sales budget for the first five months of 2021 is given on a certain product line manufactured by Boots Styles, Inc. January February March Sales budget in units 157,000 162,000 204,000 223,000 245,000 April May The inventory of finished products at the end of each month is equal to 20% of the sales estimate for the next month. This requirement is expected to be met by Jan. 1. No work is in process at the end of each month. Each unit of product requires two types of raw materials as follows: Material A 2 unit Material B 6 units The estimated cost of Material A is P5.00 per unit, and the estimated cost of Material B is PO.60 per unit. Materials equal to 30% of next month's production needs are to be on hand at the end of each month. This requirement is expected to be met on Jan. 1. REQUIRED: 1. Prepare a production budget for the first quarter of 2021 broken down by months. Include a total column. 2. Prepare a purchases budget for each type of raw materials also for the first quarter of 2021 broken down into months. Include a total colum. Boots Style, Inc. Production Budget For the First Quarter of 2021 Extra Jan. Feb. March Total Sales budget Add: Ending inventory (20%) Total requirements Less: Beginning inventory Production budget April
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kis
Minda
8 Exercise 4-25
A sales budget for the first five months of 2021 is given on a certain
product line manufactured by Boots Styles, Inc.
Sales budget in units
157,000
January
162,000
February
204,000
March
223,000
April
May
245,000
The inventory of finished products at the end of each month is equal to
20% of the sales estimate for the next month. This requirement is expected to
be met by Jan. 1. No work is in process at the end of each month.
Each unit of product requires two types of raw materials as follows:
Material A
2 unit
Material B
6 units
The estimated cost of Material A is P5.00 per unit, and the estimated cost
of Material B is PO.60 per unit. Materials equal to 30% of next month's
production needs are to be on hand at the end of each month. This requirement
is expected to be met on Jan. 1.
REQUIRED:
1. Prepare a production budget for the first quarter of 2021 broken down by
months. Include a total column.
2. Prepare a purchases budget for each type of raw materials also for the first
quarter of 2021 broken down into months. Include a total colum.
Boots Style, Inc.
Production Budget
For the First Quarter of 2021
Extra
Jan.
Feb.
March
Total
Sales budget
Add: Ending inventory (20%)
Total requirements
Less: Beginning inventory
Production budget
April
Transcribed Image Text:ule 2
2021
Product B
50,000
14,000
64,000
15,000
49,000
Product C
30,000
7,000
37,00
6,00
31,0
101
139
Boots Style, Inc.
Purchases Budget- Material A
For the First Quarter of 2021
Jan.
Feb.
March
Total
Production budget
x No. of units required
Production requirements
Add: Ending inventory (30%)
Total requirements
Less: Beginning inventory
Purchases budget (units)
x Budgeted unit cost
Purchases budget (pesos)
1/2
1/2
1/2
Boots Style, Inc.
Purchases Budget- Material B
For the First Quarter of 2021
Production budget
x No. of units required
Production requirements
Add: Ending inventory (30%)
Total requirements
Less: Beginning inventory
Purchases budget (units)
x Budgeted unit cost
Purchases budget (pesos)
Jan.
Feb.
March
Total
6.
6.
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