NUBD Co. sells bird cages. The company has prepared the following sales forecast for the third quarter of 2021: July | August September 5,000 units | 6,000 units |10,000 units Inventory of finished goods in June 30, 2021 is budgeted at 1,000 units. Management would like the desired quantity of finished goods inventory at the end of each month t equal 20% of next month's budgeted sales. October's projected sales are 12,000 units. Each completed unit of finished product requires 3 square feet of cedar at a cost of P15 per square foot. The company has determined that it needs 10% of next month's raw material needs on hand at the end of each month.

NUBD Co. sells bird cages. The company has prepared the following sales forecast for the third quarter of 2021: July | August September 5,000 units | 6,000 units |10,000 units Inventory of finished goods in June 30, 2021 is budgeted at 1,000 units. Management would like the desired quantity of finished goods inventory at the end of each month t equal 20% of next month's budgeted sales. October's projected sales are 12,000 units. Each completed unit of finished product requires 3 square feet of cedar at a cost of P15 per square foot. The company has determined that it needs 10% of next month's raw material needs on hand at the end of each month.

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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