committee has reached agreement on the following data for the 6 months ending
June 30, 2013.
units: First quarter 5,000; second quarter 6,000; third quarter 7,000
raw materials inventory: 50% of the next quarter’s production requirements
finished goods inventory: 30% of the next quarter’s expected sales units
production: 7,250 units
ending raw materials and finished goods inventories at December 31, 2012,
follow the same percentage relationships to production and sales that occur in
2013. Three pounds of raw materials are required to make each unit of finished
goods. Raw materials purchased are expected to cost $4 per pound.
Complete the production budget by quarters for
the 6-month period ended June 30, 2013.
the Six Months Ending June 30, 2013
1 2 Months
Total required units
Required production units