Business, 01.07.2020 16:01 cindyramirez3140

Fuqua Company’s sales budget projects unit sales of part 198Z of 10,100 units in January, 12,600 units in February, and 13,700 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2019. A: Prepare a projected budget for Jan and Feb 2020.
B: Prepare a direct material budget for Jan 2020.

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Fuqua Company’s sales budget projects unit sales of part 198Z of 10,100 units in January, 12,600 uni...