Coronado Company's sales budget projects unit sales of part 1987 of 11,800 units in January, 13,400 units in February, and 16,100 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Coronado 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, 2021. (a)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Coronado Company's sales budget projects unit sales of part 1987 of 11,800 units in January, 13,400 units in February,
and 16,100 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Coronado 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, 2021.
(a)
Your answer is partially correct.
Prepare a production budget for January and February 2022.
Total Materials Required
Add V: Desired Ending Finished Goods Inventory
Total Materials Required
Less V: Beginning Direct Materials
CORONADO COMPANY
Production Budget
For the Quarter Ending February 28, 2022
Direct Material Pounds Per Unit
January
48480
22304
70784
19392
51392
February
000
Transcribed Image Text:Coronado Company's sales budget projects unit sales of part 1987 of 11,800 units in January, 13,400 units in February, and 16,100 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 per pound. Coronado 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, 2021. (a) Your answer is partially correct. Prepare a production budget for January and February 2022. Total Materials Required Add V: Desired Ending Finished Goods Inventory Total Materials Required Less V: Beginning Direct Materials CORONADO COMPANY Production Budget For the Quarter Ending February 28, 2022 Direct Material Pounds Per Unit January 48480 22304 70784 19392 51392 February 000
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