Fuque Company's sales budget projects unit sales of part 1982 of 10,300 units in January, 12,500 units in February, and 13,400 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $5 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2016. (a) Prepare a production budget for January and February 2017. FUQUA COMPANY Production Budget (b) Prepare a direct materials budget for January 2017. FUQUA COMPANY Direct Materials Budget January January February

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…