Lubriderm Corporation Has The Following Budgeted Sales In Units For The Next Six Month Period Month June July August Se 1 (47.77 KiB) Viewed 124 times
Lubriderm Corporation has the following budgeted sales in units for the next six-month period: Month June July August September October November Unit Sales 90,000 100,000 200,000 150,000 200,000 100,000 1. There were 25,000 units of finished goods in inventory at the beginning of July. 2. Plans are to have an ending inventory of finished products that equal 25% of the unit sales for the next month. 3. Five pounds of materials are required for each unit produced. Each pound of material costs $10. 4. Ending Inventory levels for materials are equal to 20% of the total material inventory production needs for the next month. 5. Materials inventory on July 1 as 125,000 pounds.
Requirementi Prepare a purchases budget in pounds and dollars for July, August, and September, and give total purchases in both pounds and dollars for each month. (6%) July August September Production in units Targeted ending inventory in lbs. Production needs in lbs. Total requirements in lbs. Less: Beginning inventory in lbs. Purchases needed in lbs. Cost per lb. Total material purchases
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