60.1K
Verified Solution
Link Copied!
CM Company produces eye glass frames. One of the components of eye glass frames are screws. Budgeted sales for 2023 are as follows:
| | Frames |
| July | 7,000 |
| August | 8,000 |
| September | 6,500 |
| October | 5,500 |
The company has the following inventory requirements:
The finished goods ending inventory must be equal to 500 frames plus 5% of the following month's sales.
Each eye glass frame requires 6 screws.
The raw materials ending inventory must be equal to 10% of the following month's production needs for raw materials.
Required:
Prepare a production budget for the third quarter beginning July, by month and in total, for the eye glass frames.
Prepare a direct material purchases budget showing the quantity of screws to be purchased for July.
Answer & Explanation
Solved by verified expert
