PROBLEM 7-B PRODUCTION BUDGET The TESS Company has budgeted sales for the year as follows: Quarter 3 14,000 Quarter 1 10,000 Quarter 2 12,000 Quarter 4 16,000 Sales in units The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material. Required: 2. How many pounds of materials should be purcnased for the second quarter?

PROBLEM 7-B PRODUCTION BUDGET The TESS Company has budgeted sales for the year as follows: Quarter 3 14,000 Quarter 1 10,000 Quarter 2 12,000 Quarter 4 16,000 Sales in units The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material. Required: 2. How many pounds of materials should be purcnased for the second quarter?

Name: PROBLEM 7-B PRODUCTION BUDGETThe TESS Company has budgeted sales for
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Description: PROBLEM 7-B PRODUCTION BUDGETThe TESS Company has budgeted sales for the year as follows:Quarter 314,000Quarter 110,000Quarter 212,000Quarter 416,000Sales in unitsThe ending inventory of finished goods for each quarter should equal 25% of the next q

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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A9
A9
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