50 assume that on january 1 the inventory of

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Material B) must be equal to 80% of the following month’s production needs. 50. Assume that on January 1 the inventory of Quickclean was 8,000 units. Expected sales in January are  14,000 units and expected sales in February are 18,000 units. The number of units needed to be  manufactured in January would be: A) 10,500 B) 14,000 C) 14,500 D) 15,000 Level: Medium    LO:  3    Ans:  C 51. Assume that the production budget calls for 26,000 units of Quickclean to be manufactured in June  and 32,000 units of Quickclean to be manufactured in July. On May 31 there will be 41,600 pounds of  Material A in inventory. The number of pounds of Material A needed for production during June would  be: Brewer, Introduction to Managerial Accounting, 3/e 117
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52. Assume that the production budget calls for 26,000 units of Quickclean to be manufactured in June  and 32,000 units to be manufactured in July. On May 31 there will be 104,000 pounds of Material B in  inventory. The number of pounds of Material B to be purchased during June would be: Use the following information to answer 53-54 The TS Company has budgeted sales for the year as follows: The ending inventory of finished goods for each quarter should equal 25% of the next quarter’s budgeted  sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw  materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200  pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter’s  production needs in material. 53. Scheduled production for the third quarter should be: 54. Scheduled purchases of raw materials for the second quarter should be: A) 50,000 pounds B) 55,800 pounds C) 50,800 pounds D) 55,000 pounds Level: Hard    LO:  4    Ans:  C Use the following information to answer 55-56 Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending  inventory levels are planned for the year. Brewer, Introduction to Managerial Accounting, 3/e 118
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Each unit of finished goods requires 3 grams of raw material. Brewer, Introduction to Managerial Accounting, 3/e 119
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