Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. crest products expects the following sales of its

Crest Products expects the following sales of its single product: Crest has an ending...

70.2K

Verified Solution

Question

Accounting

Crest Products expects the following sales of its single product:
Crest has an ending finished goods inventory policy of 30% of the next month's sales needs. September 1 inventory is projected to be
5,000 units. Each finished unit requires 2 units of Component x and 3 units of Component Z. August 1 materials inventory includes
6,000 units of Component x and 142,000 units of Component Z. Crest desires to maintain a Component x inventory equal to 10% of
next month's production needs and a Component Z inventory equal to 20% of next month's production needs.
a. Prepare a production budget for Crest for the quarter ending December 31.
b. Prepare a direct materials purchases budget for Component Z for quarter ending December 31. Assume a desired ending inventory
for Component Z of 13,000 units at December 31, and a constant unit cost of $4 per lb.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students