Here you go. Please let me know if you have any question. Thanks
check_circle fareeha27 marked this question as complete.
Module 6 - Budget Problem
Country Cookin' Inc. begins the budgeting process for the following year in the 1st quarter of the current year. With the information provided below, prepare the sales, production and direct materials budgets for the 1st quarter of
next year. Also determine the budgeted manufacturing cost per unit and prepare the budgeted income statement for January of next year.
Country Cookin' Inc. sells the cooker/smokers they manufacture to various retailers for $130 each. Each cooker/smoker requires 11 ounces of raw material, which is purchased by Country Cookin' Inc. for $8.00 per ounce.
To prepare for next month's production, Country Cookin' Inc. likes to maintain an ending stock of raw material equal to 10% of the production requirements for the current month. The company would also like to maintain
an ending stock of finished cooker/smokers equal to 20% of next month's sales.
Sales are projected to be 6,000 for January, 8,000 for February and 14,000 for March.
Your Company expects to sell 12,000 cooker/smokers in April and needs 132,000 ounces of direct materials for production.
15% of sales from Country Coo...