Production Budget?

Question

Clingy Company budgeted the following unit sales:
January 14,000
February 12,000
March 11,000
April 16,000
May 13,000

Each unit requires 2 yards of fabric which is estimated to cost $ 3.50 per yard. 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. Clingy company also have a policy of maintaining a raw materials inventory at the end of each month equal to 10 % of the yards needed for the following month's production. There were 1,200 yards of fabric on hand at March 1.


-Prepare a production budget and a direct materials budget for March.

Answer 1

Excuse me I ain't doing your home work for you. You will never learn any thing that way.