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Sunland Companys sales budget projects unit sales of part 198Z of 12,000 units in January,...

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Accounting

Sunland Companys sales budget projects unit sales of part 198Z of 12,000 units in January, 13,600 units in February, and 16,400 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Sunland Company desires its ending raw materials inventory to equal 40% of the next months production requirements, and its ending finished goods inventory to equal 20% of the next months expected unit sales. These goals were met at December 31, 2021.image

Prepare a production budget for January and February 2022. SUNLAND COMPANY Production Budget January February

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