Exercise 21-12 Fuqua Company’s sales budget projects unit sales of part 198Z of 10,500 units in January, 12,900 units in February, and 13,200 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2013.Prepare a production budget for January and February 2014.FUQUA COMPANYProduction BudgetFor the Two Months Ending February 28, 2014JanuaryFebruary Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced AddLess: Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced AddLess: Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be ProducedPrepare a direct materials budget for January 2014.FUQUA COMPANYDirect Materials BudgetFor the Month Ending January 31, 2014January Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced AddLess: Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced AddLess: Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced$ Beginning Direct MaterialsBeginning Finished Goods InventoryCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be Produced$
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