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Problem 9-39 Edgeworth Box Corporation

Managerial Accounting: Creating Value in a Dynamic Business Environment

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Prepare a master budget for Edgeworth Box Corporation for the next year. Assume a 1. Sales budget. Box C Sales in units 500000 Sales price per unit  $1.35  Sales revenue  $675,000  2. Production budget (in units): Box C Sales in units from (from sales budget) 500000 Add desired ending inventory of finished goods 5000 Total units required 505000 Less expected beginning inventory of finished goods 10000 Units to be produced 495000 3. Direct-material budget. Paperboard: Box C Production requirement 495000 Raw materials required per box (pounds) 0.3 Raw materials required for production (pounds) 148500 Add desired ending inventory of raw material (pounds) Total raw material required Less expected beginning inventory of raw material (pounds) Raw material to be purchased (pounds) Price  per pound Cost of purchases Corrugating medium: Box C Units to be produced (from production budget) 495000 Raw materials required per box (pounds) 0.2
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