Required a. Prepare a production budget for September, October, and November. Do not use a negative sign with your answers. Drainage Solutions Culverts Production Budget For the Months of September, October, and November Sept. Oct. Nov. Dec. Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Budgeted sales Plus desired ending inventory Total inventory requirements Less beginning inventory Budgeted production b. Prepare a purchases budget in units and dollars for September and October.
Required a. Prepare a production budget for September, October, and November. Do not use a negative sign with your answers. Drainage Solutions Culverts Production Budget For the Months of September, October, and November Sept. Oct. Nov. Dec. Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Budgeted sales Plus desired ending inventory Total inventory requirements Less beginning inventory Budgeted production b. Prepare a purchases budget in units and dollars for September and October.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Production and Purchases Budgets
Drainage Solutions Culverts produces small culverts for water drainage under two-lane dirt roads.
Budgeted unit sales for the next several months are:
Month Sales
September 2,100
October 1,600
November 900
December 600
At the beginning of September, 525 units of finished goods were in inventory. During the final third of the year, as road
construction declines, plans are to have an inventory of finished goods equal to 25 percent of the following month's sales.
Each unit of finished goods requires 600 pounds of raw materials at a cost of $5 per pound. Management wishes to
maintain month-end inventories of raw materials equal to 50 percent of the following month's needs. Five hundred
thousand pounds of raw materials were on hand at the start of September.
Required
a. Prepare a production budget for September, October, and November.
Do not use a negative sign with your answers.
Drainage Solutions Culverts
Production Budget
For the Months of September, October, and November
Sept.
Oct.
Nov. Dec.
Budgeted sales
Answer Answer Answer Answer
Plus desired ending inventory
Answer Answer Answer
Total inventory requirements
Answer Answer Answer
Less beginning inventory
Answer Answer Answer
Budgeted production
Answer Answer Answer
b. Prepare a purchases budget in units and dollars for September and October.
Do not use a negative sign with your answers.
Drainage Solutions Culverts
Purchases Budget
For the Months of September and October
Units (in pounds):
Production requirements
Plus desired ending inventory
Total inventory needs
Less beginning inventory
Budgeted purchases in pounds
Dollars:
Budgeted purchases:
Sept.
Oct.
Answer
Answer Answer Answer
Answer Answer
Answer Answer
500,000 Answer
Answer Answer
Nov.
Answer
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