Brothers Inc. manufactures fidget spinner toy, Management is now preparing detailed budgets for the third quarter, and has assembled the following information to assist in preparing the budget:
July August September October
Sales in units
a The finished goods inventory on hand at the end of each month must be equal to of the next month's sales. The inventory of finished goods on hand on June is budgeted to be units.
b Each fidget spinner requires pounds of material. The company would like the inventory of material on hand at the end of each month to be equal to of the following month's production needs. The inventory of material on hand on June is budgeted to be pounds and inventory on hand on September is budgeted to be pounds.
Required:
Prepare a production budget for fidget spinner, by month and in total.
Prepare direct material budget for fidget spinner, by month and in total.
