EXERCISE 810 Production and Direct Materials Budgets LO83, LO84Pearl Products Limited of Shenzhen, China, manufactures...
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EXERCISE Production and Direct Materials Budgets LO LOPearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters cc of solvent H are required to manufacture each unit of Supermix, one of the companys products. The company is planning its raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:a The finished goods inventory on hand at the end of each month must equal units ofSupermix plus of the next months sales. The finished goods inventory on June isbudgeted to be units.
EXERCISE Production and Direct Materials Budgets LO LOPearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters cc of solvent H are required to manufacture each unit of Supermix, one of the companys products. The company is planning its raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:a The finished goods inventory on hand at the end of each month must equal units ofSupermix plus of the next months sales. The finished goods inventory on June isbudgeted to be units.
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