White Corporation's budget calls for the following sales for next year: Quarter 3 Quarter 4 64,200 units 94,800 units Quarter 1 Quarter 2 89,000 units 77,000 units Each unit of the product requires 5 pounds of direct materials. The company's policy is to begin each quarter with an inventory of product equal to 5% of that quarter's estimated sales requirements and an inventory of direct materials equal to 20% of that quarter's estimated direct materials requirements for production. Required: 1. Determine the production budget for the second quarter. 2. Determine the materials purchases budget for the second quarter.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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White Corporation's budget calls for the following sales for next year:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
64,200 units
94,800 units
89,000 units
77,000 units
Each unit of the product requires 5 pounds of direct materials. The company's policy is to
begin each quarter with an inventory of product equal to 5% of that quarter's estimated
sales requirements and an inventory of direct materials equal to 20% of that quarter's
estimated direct materials requirements for production.
Required:
1. Determine the production budget for the second quarter.
2. Determine the materials purchases budget for the second quarter.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the production budget for the second quarter.
WHITE CORPORATION
Production Budget
2nd Quarter
Budgeted sales
Desired ending inventory
Total units needed
Beginning inventory
Total units to produce
Transcribed Image Text:White Corporation's budget calls for the following sales for next year: Quarter 1 Quarter 2 Quarter 3 Quarter 4 64,200 units 94,800 units 89,000 units 77,000 units Each unit of the product requires 5 pounds of direct materials. The company's policy is to begin each quarter with an inventory of product equal to 5% of that quarter's estimated sales requirements and an inventory of direct materials equal to 20% of that quarter's estimated direct materials requirements for production. Required: 1. Determine the production budget for the second quarter. 2. Determine the materials purchases budget for the second quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the production budget for the second quarter. WHITE CORPORATION Production Budget 2nd Quarter Budgeted sales Desired ending inventory Total units needed Beginning inventory Total units to produce
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