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Business, 18.12.2019 02:31 eme05

On january 1, 2020, the carla vista company budget committee has reached agreement on the following data for the 6 months ending june 30, 2020. sales units: first quarter 5,400; second quarter 6,100; third quarter 7,900. ending raw materials inventory: 40% of the next quarter’s production requirements. ending finished goods inventory: 25% of the next quarter’s expected sales units. third-quarter production: 7,430 units. the ending raw materials and finished goods inventories at december 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 5 pounds of raw materials are required to make each unit of finished goods. raw materials purchased are expected to cost $6 per pound.

prepare a production budget by quarters for the 6-month period ended june 30, 2020.

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