Karam IncHas Compiled the Following Data in Order to Put Together

question 69

Essay

Karam Inc.has compiled the following data in order to put together their first quarter operating budget for 2011:
Additional information:
Karam sells each unit for $95.
Company policy is to have 30 percent of next month's sales (in units)in ending finished goods inventory.This policy was met in December.
Company policy is to have 40 percent of next month's production needs in ending raw materials inventory.The production needs for April is 95,500.This policy was met in December.
It takes three pounds of material to produce each unit and the cost is $2.75/pound.
Required:
A.Prepare a sales budget for the January,February and March and for the first quarter in total.
B.Prepare a production budget for January,February and March and for the first quarter in total.
C.Prepare a direct materials purchases budget for January,February and March and for the first quarter in total.

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Definitions:

Motor Load

The amount of power a motor needs to perform its task, reflecting the mechanical demand placed on it.

Automatic Restart

A feature in machinery that allows it to automatically resume operation after an interruption or stop.

Power Outage

A power outage is the loss of the electrical power supply to an area, can be due to various reasons like storms, faults in the electrical system, or maintenance work.

Manual Motor Starters

Electrical devices designed to manually start and stop motors, providing protection against overload and short circuits.