Modern Goods Corporation has the follwoing budgeted sasles for the selected six-moth period:
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There were 7,500 units of finished goods in inventory at the beginning of January. Plans are to hav an inventory of finished product equal to 20 percent of the unit sales for the next month.
Three pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for matgerial equal 30percent of the needs for the next month. Materials inventory on Jan 1 wasa 5,000 pounds.
A) Prepare a production budget in units for Feb, March, and April
B) Prepare a purchases budget in pounds and dollars for Feb, March and April