Sunland Companys sales budget projects unit sales of part 198Z of 12,000 units in January,...
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Sunland Companys sales budget projects unit sales of part 198Z of 12,000 units in January, 13,600 units in February, and 16,400 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Sunland Company desires its ending raw materials inventory to equal 40% of the next months production requirements, and its ending finished goods inventory to equal 20% of the next months expected unit sales. These goals were met at December 31, 2021.
Prepare a production budget for January and February 2022. SUNLAND COMPANY Production Budget January February
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