On January 1, 2020, the Carla Vista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: 40% of the next quarter's production requirements. First quarter 5,400; second quarter 6,100; third quarter 7,900. 25% of the next quarter's expected sales units. 7,430 units. The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $6 per pound. Prepare a production budget by quarters for the 6-month period ended June 30, 2020. CARLA VISTA COMPANY Production Budget 1 Quarter Six 2 Months
On January 1, 2020, the Carla Vista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: 40% of the next quarter's production requirements. First quarter 5,400; second quarter 6,100; third quarter 7,900. 25% of the next quarter's expected sales units. 7,430 units. The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $6 per pound. Prepare a production budget by quarters for the 6-month period ended June 30, 2020. CARLA VISTA COMPANY Production Budget 1 Quarter Six 2 Months
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2020, the Carla Vista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020.
Sales units:
Ending raw materials inventory:
Ending finished goods inventory:
Third-quarter production:
40% of the next quarter's production requirements.
First quarter 5,400; second quarter 6,100; third quarter 7,900.
25% of the next quarter's expected sales units.
7,430 units.
The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 5 pounds of
raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $6 per pound.
Prepare a production budget by quarters for the 6-month period ended June 30, 2020.
CARLA VISTA COMPANY
Production Budget
1
Quarter
Six
2
Months
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