Do not give image format 2. Brothers Inc. manufactures fidget spinner toy, Management is now preparingdetailed budgets for the third quarter, and has assembled the following informationto assist in preparing the budget:July12,000August15,000September10,000October9,000Sales (in units)a. The finished goods inventory on hand at the end of each month must be equalto 10% of the next month's sales. The inventory of finished goods on hand onJune 30 is budgeted to be 2,400 units.b. Each fidget spinner requires 3 pounds of P3 material. The company would likethe inventory of P3 material on hand at the end of each month to be equal to25% of the following month's production needs. The inventory of P3 material onhand on June 30 is budgeted to be 21,525 pounds and inventory on hand onSeptember 30 is budgeted to be 15,400 pounds.Required:1. Prepare a production budget for fidget spinner, by month and in total. |2. Prepare direct material budget for fidget spinner, by month and in total.

Production budget is the statement prepared by the entity to determine the estimated units to be…

2. Brothers Inc. manufactures fidget spinner toy, Management is now preparing detailed budgets for the third quarter, and has assembled the following information to assist in preparing the budget: July 12,000 October Sales (in units) 9,000 a. The finished goods inventory on hand at the end of each month must be equal to 10% of the next month's sales. The inventory of finished goods on hand on June 30 is budgeted to be 2,400 units. August 15,000 September 10,000 b. Each fidget spinner requires 3 pounds of P3 material. The company would like the inventory of P3 material on hand at the end of each month to be equal to 25% of the following month's production needs. The inventory of P3 material on hand on June 30 is budgeted to be 21,525 pounds and inventory on hand on September 30 is budgeted to be 15,400 pounds. Required: 1. Prepare a production budget for fidget spinner, by month and in total. | 2. Prepare direct material budget for fidget spinner, by month and in total.

2. Brothers Inc. manufactures fidget spinner toy, Management is now preparing detailed budgets for the third quarter, and has assembled the following information to assist in preparing the budget: July 12,000 October Sales (in units) 9,000 a. The finished goods inventory on hand at the end of each month must be equal to 10% of the next month's sales. The inventory of finished goods on hand on June 30 is budgeted to be 2,400 units. August 15,000 September 10,000 b. Each fidget spinner requires 3 pounds of P3 material. The company would like the inventory of P3 material on hand at the end of each month to be equal to 25% of the following month's production needs. The inventory of P3 material on hand on June 30 is budgeted to be 21,525 pounds and inventory on hand on September 30 is budgeted to be 15,400 pounds. Required: 1. Prepare a production budget for fidget spinner, by month and in total. | 2. Prepare direct material budget for fidget spinner, by month and in total.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...

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