A135 is budgeted to be 64,500 pounds. c. The company maintains no work in process inventories. A sales budget for Playclay for the last six months of the year follows: Required: 1. Prepare a production budget for Playclay for the months July, August, September, and October. 2. Examine the production budget that you prepared. Why will the company produce more units than it sells in July and August and less units than it sells in September and October? 3. Prepare a direct materials budget showing the quantity of material A135 to be purchased for July, August, and September and for the quarter in total.
A135 is budgeted to be 64,500 pounds. c. The company maintains no work in process inventories. A sales budget for Playclay for the last six months of the year follows: Required: 1. Prepare a production budget for Playclay for the months July, August, September, and October. 2. Examine the production budget that you prepared. Why will the company produce more units than it sells in July and August and less units than it sells in September and October? 3. Prepare a direct materials budget showing the quantity of material A135 to be purchased for July, August, and September and for the quarter in total.
chap07-Rev.-FI5-Ex-Pr-1.docx