Fortin Limited Produces And Sells A Single Product A Wearable Led Light For Runners And Cyclists The Analytics Group A 1 (38.56 KiB) Viewed 9 times
Fortin Limited Produces And Sells A Single Product A Wearable Led Light For Runners And Cyclists The Analytics Group A 2 (33.88 KiB) Viewed 9 times
Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year. Budgeted unit sales First Quarter 24, 200 Second Third Quarter Quarter 21,500 20,300 Fourth Quarter 22,798 Each light requires two separate LED bulbs, each of which costs $2. To ensure enough LED bulbs are on hand to support short-term production if a problem arises with the sole supplier, Fortin Limited maintains an ending inventory of 10% of the following quarter's production needs. A total of 4,000 LED bulbs will be on hand to start the first quarter of the upcoming fiscal year. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year. Required: Prepare a direct materials purchases budget for LED bulbs, by quarter and in total, for the upcoming fiscal year. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total. Hint: Fortin Limited maintains an ending inventory of both raw materials and finished goods of 10% of the following quarter's production needs. Before preparing a direct materials budget, the production budget must be prepared. Answer is not complete. FORTIN LIMITED Direct Materials Budget - Year 2 Quarter
Prepare a direct materials purchases budget for LED bulbs, by quarter and in total, for the upcoming fiscal year. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total. Hint: Fortin Limited maintains an ending inventory of both raw materials and finished goods of 10% of the following quarter's production needs. Before preparing a direct materials budget, the production budget must be prepared. Required production of lights Number of bulbs per light Total production needs-bulbs Total needs-bulbs Required purchases-bulbs Total cost of purchases Answer is not complete. FORTIN LIMITED Direct Materials Budget-Year 2 First 24,200 x 2 48,400 4,300 52,700 5,400 20 Second Quarter 0 Third Fourth Year
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