90.2K

Verified Solution

Link Copied!

Georgina, Inc. makes one product and it provided the following information to help prepare the master budget for the next three months of operations: - The budgeted selling price per unit is $130. - Budgeted unit sales are: - April - 10,200 units - May - 12,600 units - June - 8,600 units - The ending finished goods inventory equals 20\% of the following month's sales. - The ending raw materials inventory equals 15% of the following month's raw materials production needs. Each unit of finished goods requires 3 pounds of raw materials. The raw materials cost $5.00 per pound. - June's total pounds required for production is 20,200 . (Hint: you need this to compute desired ending inventory for Direct Materials Budget) Prepare a sales budget, production budget, direct materials budget for the month of May. (Enter only numbers, do not include any words, such as 'units'. Use \$ for amounts in dollars, and do not use a \$ for amounts in units. And use only whole dollars, no cents. Also, include the comma for to separate the thousands, i.e. 20,000) Production Budget \begin{tabular}{|l|l|l|} \hline Direct Materials Budget & & \\ \hline & & \\ \hline Units to Be Produced & & \\ \hline Direct Material per Unit & & \\ \hline Total Pounds Needed for Production & & \\ \hline Desired Ending Inventory & & \\ \hline Total Cost of Direct Material Purchase & \\ \hline Total Material Required & & \\ \hline Beginning Inventory & & \\ \hline Pounds of Direct Material Purchase & \\ \hline Requirements & & \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer