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Fuqua Company's sales budget projects unit sales of part 1982 of 10,000 units in January, 12,400 units in February, and 13,300 units in March. Each unit of part 1982 requires 3 pounds of materials, which cost $5 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2019. (a) Your answer is partially correct. Prepare a production budget for January and February 2020.
Question 1 of 5 < Prepare a production budget for January and February 2020. Expected Unit Sales Add Desired Ending Finished Goods Inventory : Total Required Units FUQUA COMPANY Production Budget For the Two Months Ending February 28, 2020 January Less # Beginning Finished Goods Inventory Required Production Units. 10,000 2.400 12,400 2,540 9860 1.39/5 February 12.400 2800 15200 2.640 12560