Unformatted text preview: 000,000.00 12 ounce bottle 4 gallon container Total revenues 2008 ** 400,000 units * 12 months *** 100,000 units * 12 months Chapter 6 Master Budget & Responsibility Accounting Responsibility
Production Budget Dasani begins 2008 with 900,000 12 ounce bottles in inventory. Dasani The VP of operations requests that 12 ounce ending inventory on 12/31/2008 be no less than 600,000 bottles. Based on sales projections (from the previous slide), what is the minimum number of 12 ounce bottles Dasani must produce during 2008? of Budgeted unit sales (12 ounce) + target ending finished goods inventory = total requirements - beginning finished goods inventory = units to be produced 4,800,000 600,000 5,400,000 (900,000) 4,500,000 Chapter 6 Master Budget & Responsibility Accounting Responsibility
Crystal Company budgets sales of Product A at 200,000 units for Crystal July 2008. Production of one unit requires 3 pounds of wood and 2 gallons of glue. Actual beginning inventories and budgeted ending inventories for the month are as follows: ending Product A Wood Wood Glue July 1 25,000 units 23,000 pounds 23,000 16,000 gallons July 31 8,000 units 19,000 pounds 21,000 gallons Compute the number of gallons of glue the company needs to Compute glue purchase during...
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- Summer '08
- Responsibility Accounting Responsibility