s inventory: ads inventory: uction: 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 9,360 units.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020.
SHEFFIELD COMPANY
Direct Materials Budget
Quarter
2
Transcribed Image Text:Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020. SHEFFIELD COMPANY Direct Materials Budget Quarter 2
Current Attempt in Progress
On January 1, 2022, the Sheffield Company budget committee has reached agreement on the following data for the 6 months ending
June 30, 2022.
Sales units:
Ending raw materials inventory:
Ending finished goods inventory:
Third-quarter production:
First quarter 6.500; second quarter 7,800; third quarter 9.100.
40% of the next quarter's production requirements.
25% of the next quarter's expected sales units.
9,360 units.
The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to
production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw
materials purchased are expected to cost $4 per pound.
Transcribed Image Text:Current Attempt in Progress On January 1, 2022, the Sheffield Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2022. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 6.500; second quarter 7,800; third quarter 9.100. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 9,360 units. The ending raw materials and finished goods inventories at December 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.
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