Alvarez Company produces various parts used in the automotive industry.

Price: $10 USD

Question description

The sales budget for the first eight months of 2012 shows the following ­projections:

Month     Units       Month     Units  

January   25,000     May     31,400  

February  27,000     June     34,500

March     32,000     July     36,700

April     28,500     August     35,000 

Inventory on December 31 of the previous year was budgeted at 6,250 units. The desired quantity of finished- goods inventory at the end of each month in 2012 is to be equal to 25 percent of the next month’s budgeted unit sales. Each unit of finished product requires three pounds of raw material. The company wants to have 30 percent of next month’s required raw materials on hand at the end of each month. A. Prepare a production budget for January through June of 2012. B. Prepare a material purchases budget for the same period, assuming that each pound of raw material costs $ 22.

Tutor Answer

(Top Tutor) Daniel C.
School: Duke University
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1824 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors