Acct 2102 Test 3 Notes - June 30,000 units + 20% x 25,000 =...

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Sales Budget gives you sales revenue Production budget – must know budgeted units Projected April – 20,000 units x $10 per unit = $200,000 sales revenue May – 50,000 units x $10 = $500,000 sales revenue June – 30,000 units x $10 = $300,000 sales revenue Sales Budget for the 2 nd Quarter = $1,000,000 July – 25,000 units x $10 = $250,000 August – 15,000 units x $10 = $150,000 FG inventory should be 20% of the next month’s sales April – 20,000 units + 20% x 50,000 = 30,000 – (20% x 20,000) = 26,000 units produced May – 50,000 units + 20% x 30,000 = 56,000 – (10,000) = 46,000 units produced
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Unformatted text preview: June 30,000 units + 20% x 25,000 = 35,000 6,000 = 29,000 units produced Production Budget for the 2 nd Quarter = 101,000 units Purchases Budget Direct material = raw materials April 26,000 units x 5 oz = 130,000 oz +23,000 EI 13,000 BI = 140,000 oz x $.40 per oz = $56,000 = purchasesx Price Standard how much you expect to pay Quantity Standard how much you expect to use DM standard cost per unit is equal to price standard times quantity standard...
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This note was uploaded on 05/26/2011 for the course ACCT 2102 taught by Professor Farmer during the Spring '08 term at University of Georgia Athens.

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