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:
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?© BrainMass Inc. brainmass.com December 15, 2020, 4:15 pm ad1c9bdddf
The solution prepares a purchases and production budget for the months of January and February.