White Corporation’s budget calls for the following sales for next year: Quarter 1 90,000 units Quarter...

White Corporation’s budget calls for the following sales for next year:


Quarter 1	90,000	units	Quarter 3	68,000	units
Quarter 2	76,000	units	Quarter 4	96,000	units

Each unit of the product requires 3 pounds of direct materials. The company’s policy is to begin each quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirements and an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production.

Required:

1. Determine the production budget for the second quarter.

2. Determine the materials purchases budget for the second quarter.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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