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# Compute scheduled production and purchases

The Monroe Company has budgeted sales for the year as follows:
Quarter 1 Quarter 2 Quarter 3 Quarter 4

sales in unit 10,000 12,000 14,000 16,000

The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in material.

.What is the Scheduled production for the third quarter and the scheduled purchases of raw materials for the second quarter?

#### Solution Preview

The Monroe Company has budgeted sales for the year as follows:
Quarter 1 Quarter 2 Quarter 3 Quarter 4

sales in unit 10,000 12,000 14,000 16,000

The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 2,500 units. Four pounds of raw materials are ...

#### Solution Summary

This provides the steps to compute scheduled production and purchases with the help of an example

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