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  1. business
  2. accounting
  3. swifty industries has budgeted the following unit

Swifty Industries has budgeted the following unit sales: \table[[2027,Units],[January,10,000],[February,8,000],[March,9,000],[April,11,000],[May,15,500]] The finished goods...

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Accounting

Swifty Industries has budgeted the following unit sales:
\table[[2027,Units],[January,10,000],[February,8,000],[March,9,000],[April,11,000],[May,15,500]]
The finished goods units on hand on December 31,2026 was 2,000 units. Each unit of finished goods requires 2 pounds of direct materials that are estimated to cost an average of $5 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. The company also has a policy of maintaining a direct materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 5,760 pounds of direct materials on hand at December 31,2026.
(a)
For the first quarter of 2027, prepare a production budget.
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