Prepare a Purchases and Production Budget
Not what you're looking for?
I would like to know how I can setup a production budget for January, February and March. What is the purchases budget in dollars for the month January, February.
I have the following sales estimations:
Month Sales
January 45,000
February 60,000
March 90,000
April 93,000
Currently I have 10,000 units of finished goods in inventory (01/01). The inventory of finished goods should be equal to 1/3 of the sales for the next month.
The materials inventory 01/01 are 5.5 million pounds.
For each unit produced I need 4 hundred pounds of material (1 pound = $10). The inventory levels for materials should be equal to one-fourth of the needs for the next month.
How can I calculate the budgets and what would be the results?
Purchase this Solution
Solution Summary
The solution prepares a purchases and production budget for the months of January and February.
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Motivation
This tests some key elements of major motivation theories.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Lean your Process
This quiz will help you understand the basic concepts of Lean.