Similar to Recall and Review 1 The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows: Finished goods inventory, March 1. Finished goods inventory required, March 31... 3,000 units 1,000 units Materials used in production: Inventory Required Inventory Standard March 1 March 31 Cost A (one gallon per unit) 500 gal 1,000 gal $2 per gal B (one pound per unit) 1,000 lb 1,000 lb $1 per lb Prepare the following: a. A production budget for March (in units). b. A direct materials budget for the month (in units and dollars).

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...
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Similar to Recall and Review 1
The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be
20,000 units. Additional information follows:
Finished goods inventory, March 1.
Finished goods inventory required, March 31...
3,000 units
1,000 units
Materials used in production:
Inventory
Required
Inventory
Standard
March 1
March 31
Cost
A (one gallon per unit)
500 gal
1,000 gal
$2 per gal
B (one pound per unit)
1,000 lb
1,000 lb
$1 per lb
Prepare the following:
a. A production budget for March (in units).
b. A direct materials budget for the month (in units and dollars).
Transcribed Image Text:Similar to Recall and Review 1 The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows: Finished goods inventory, March 1. Finished goods inventory required, March 31... 3,000 units 1,000 units Materials used in production: Inventory Required Inventory Standard March 1 March 31 Cost A (one gallon per unit) 500 gal 1,000 gal $2 per gal B (one pound per unit) 1,000 lb 1,000 lb $1 per lb Prepare the following: a. A production budget for March (in units). b. A direct materials budget for the month (in units and dollars).
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