chapter 7 lecture notes

Inventory 40 50

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Unformatted text preview: tep 2 - Production Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total BuildIT Sales in lots 1,500 1,500 2,000 3,000 + Desired ending inventory 150 200 300 90 = Total requirements 1,650 1,700 2,300 3,090 - Beginning inventory 75 150 200 300 = Lots to be produced 1,575 1,550 2,100 2,790 8,015 BuildIT- PLUS Sales in lots 400 400 500 700 + Desired ending inventory 40 50 70 20 = Total requirements 440 450 570 720 - Beginning inventory 15 40 50 70 = Lots to be produced 425 410 520 650 2,005 Sales in lots from Revenue Budget Ending inventory 10% of next quarter’s sales volume (4th Qtr – given) Beginning inventory 1st Qtr – given, others calculated Preparing a Master Budget – Step 3 – Input Resources •  Once know the production budget, we know the output targets •  Use these to determine usage budgets for materials, labor and overhead (input resources) Preparing a Master Budget – Amarillo Toys – Direct Materials Info Requires Production and Purchasing managers to coordinate Beginning Inventory BuildIT Standard grade plasKc Boxes for packaging 65 lots @ $600 per lot 75 lots @ $400 per lot BuildIT- PLUS Special grade plasKc Boxes for packaging 30 lots @ $1,00 per lot 25 lots @ $400 per lot Dyes...
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This document was uploaded on 04/01/2014.

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