Franklin Products Limited manufactures and distributes a number o.docx - Franklin Products Limited manufactures and distributes a number of products to

Franklin Products Limited manufactures and distributes a number o.docx

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Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products, SuperStick, requires five kilograms of material D236 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter-July, August, and September. Peak sales of SuperStick occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 8,850 units plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 23,020 units. b. The raw materials inventory on hand at the end of each month must be equal to 40 % of the following month's production needs for raw materials. The raw materials inventory on June 30 for material D236 is budgeted to be 132.400 kilograms. C. The
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Unformatted text preview: company maintains no work in process inventories. A sales budget for SuperStick for the last six months of the year follows: Budgeted Sales in Units July August September October 61,700 75,850 106,700 53,850 November December 30,850 15,340 Required: 1. Prepare a production budget for SuperStick for July, August, September, and October October September August July Budgeted sales (units) Total needs Total needs Required production Book Ask Print 2. Not available in Connect 3. Prepare a direct materials purchases budget showing the quantity of material D236 to be purchased for July, August, and September and for the quarter in total. Third July August September Quarter Required production (units) Material D236 needed per unit (kgs) Production needs (kgs) Total Material D236 needs Material D236 purchases (kgs)...
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  • Spring '17
  • DEBORAHGOLDSMITH

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