Exam 3 Practice

# Exam 3 Practice - Ch 8 Problem 1 Cherokee Company...

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Ch. 8 Problem 1 : Cherokee Company manufactures chocolate chip cookies. The sales budget for the first four months is as follows: Unit Sales (packages) Dollar Sales January 20,000 \$50,000 February 25,000 \$62,500 March 22,000 \$55,000 April 23,000 \$57,500 Company policy requires that ending inventories for each month be 20% of next month’s unit sales. At the beginning of January, Cherokee had 4,000 packages of cookies. Prepare a production budget for the first quarter of the year. Make sure you calculate the number of packages produced for the first three months and for the quarter in total . Do it in the columnar format as shown in class and as started for you below. January February March Total Sales Desired EI Needed Less BI Production 1

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2 : Cherokee Company manufactures chocolate chip cookies. Each package of chocolate chips cookies requires one box and 12 cookies. Company policy requires that ending inventories of raw materials for each month be 20% of next month’s production needs. That policy was met on January 1. The packages budgeted for production for the first four months of the year is as follows: Budgeted packages January 21,000 February 24,400 March 22,200 April 23,000 Prepare a direct materials purchases budget for the first quarter of the year for chocolate chip cookies only . Make sure you calculate the number of cookies needed for each package produced for the first three months and for the quarter in total . Do it in the columnar format as shown in class and as started for you below. Cookies:
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Exam 3 Practice - Ch 8 Problem 1 Cherokee Company...

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