Question:
(Production and purchases budgets) Aurora Products has prepared the following
unit sales forecast for 2000:
|
January-June
|
July-December
|
Total
|
|
Sales
|
380,000
|
420,000
|
800,000
|
Estimated ending finished goods inventories are 30,000 units at December 31, 1999; 76,000 units at June 30; and 90,000 units at December 31, 2000. In manufacturing each unit of this product, Aurora Products uses five pounds of Material A and three gallons of Material B. The company carries no Work in Process Inventory. Direct material ending inventories are projected as follows:
|
December 31, 1999
|
June 30, 2000
|
December 31, 2000
|
|
Material A (in pounds)
|
200,000
|
250,000
|
300,000
|
|
Material B (in gallons)
|
140,000
|
160,000
|
200,000
|
Prepare a production and purchases budget for each semiannual period of 2000.