170.The Tough Jeans Company produces two different styles of jeans, Working Life and Social Life. The companysales budget estimates that 400,000 of the Working Life jeans and 250,000 of the Social Life jeans will be soldduring the year. The company begins with 9,000 pairs of Working Life and 18,000 pairs of Social Life. The company desires ending inventory of 7,500 of Working Life and 10,000 Social Life. Prepare a production budget forthe year.
171.Diamond Company manufactures two models of cassette recorders, VCH and MTV. Based on the followingproduction data for April, prepare a production budget.
|
VCH
|
MTV
|
Estimated inventory (units), April 1
|
2,900
|
4,000
|
Desired inventory (units), April 30
|
6,900
|
5,250
|
Expected sales volume (units):
|
|
|
Eastern zone
|
12,500
|
12,960
|
Midwest zone
|
19,000
|
19,800
|
Western zone
|
14,500
|
9,840
|
172.Purple Co.'s production budget for Product X for the year ended December 31 is as follows:
|
Product X
|
Sales (in units)
|
640,000
|
Plus desired ending inventory
|
85,000
|
Total
|
725,000
|
Less estimated beginning inventory, Jan. 1
|
90,000
|
Total production
|
635,000
|
In Purple's production operations, Materials A, B, and C are required to make Product X. The quantities of directmaterials expected to be used for each unit of product are as follows:
Product X
Material A 0.50 pound per unit
Material B 1.00 pound per unit
Material C1.20 pound per unit
The prices of direct materials are as follows:
Material A$0.60 per pound
Material B$1.70 per pound
Material C$1.00 per pound
Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or endinginventories for direct materials (all units purchased are used in production).