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Production and Purchases Budgets in Units At the end of business on June 30, 2017, the PE Rug Company had 150,000 square yards of rugs and 650,000 pounds of raw materials on hand. Budgeted sales for the third quarter of 2017 are: Month Sales July 260,000 sq.yards August 230,000 sq. yards September 190,000 sq.yards October 210,000 sq yards The PE Rug Company wants to have sufficient square yards of finished product on hand at the end of each month to meet 40 percent of the following month's budgeted sales and sufficient pounds of raw materials to meet 30 percent of the following month's production requirements. Five pounds of raw materials are required to produce one square yard of carpeting. Prepare a production budget for the months of July, August, and September and a purchases budget in units for the months of July and August. BE Rug Company

Production and Purchases Budgets in Units At the end of business on June 30, 2017, the PE Rug Company had 150,000 square yards of rugs and 650,000 pounds of raw materials on hand. Budgeted sales for the third quarter of 2017 are: Month Sales July 260,000 sq.yards August 230,000 sq. yards September 190,000 sq.yards October 210,000 sq yards The PE Rug Company wants to have sufficient square yards of finished product on hand at the end of each month to meet 40 percent of the following month's budgeted sales and sufficient pounds of raw materials to meet 30 percent of the following month's production requirements. Five pounds of raw materials are required to produce one square yard of carpeting. Prepare a production budget for the months of July, August, and September and a purchases budget in units for the months of July and August. BE Rug Company

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 11E
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Please help me answer the above specific to the question.

1. What is the budgeted production in sq. yards for July, Aug, and Sept?

2. What are the purchases in pounds for July and Aug? 

 

DO NOT GIVE SOLUTION IN IMAGE FORMAT 

Production and Purchases Budgets in Units At the end of business on June 30, 2017, the PE Rug Company had 150,000 square yards of rugs and 650,000 pounds of raw materials on hand. Budgeted sales for the third quarter of 2017 are: Month Sales July 260,000 sq.yards August 230,000 sq. yards September 190,000 sq. yards October 210,000 sq.yards The PE Rug Company wants to have sufficient square yards of finished product on hand at the end of each month to meet 40 percent of the following month's budgeted sales and sufficient pounds of raw materials to meet 30 percent of the following month's production requirements. Five pounds of raw materials are required to produce one square yard of carpeting. Prepare a production budget for the months of July, August, and September and a purchases budget in units for the months of July and August. PE Rug Company Production Budget For the Months of July, August, & September, 2017 July August Budgeted production - sq. yards. PE Rug Company Purchases Budget For the Months of July & August, 2017 July August Purchases in pounds September
Transcribed Image Text:Production and Purchases Budgets in Units At the end of business on June 30, 2017, the PE Rug Company had 150,000 square yards of rugs and 650,000 pounds of raw materials on hand. Budgeted sales for the third quarter of 2017 are: Month Sales July 260,000 sq.yards August 230,000 sq. yards September 190,000 sq. yards October 210,000 sq.yards The PE Rug Company wants to have sufficient square yards of finished product on hand at the end of each month to meet 40 percent of the following month's budgeted sales and sufficient pounds of raw materials to meet 30 percent of the following month's production requirements. Five pounds of raw materials are required to produce one square yard of carpeting. Prepare a production budget for the months of July, August, and September and a purchases budget in units for the months of July and August. PE Rug Company Production Budget For the Months of July, August, & September, 2017 July August Budgeted production - sq. yards. PE Rug Company Purchases Budget For the Months of July & August, 2017 July August Purchases in pounds September
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