A Sales Budget Is Given Below for One of the Products

question 51

Essay

A sales budget is given below for one of the products manufactured by Reyes, Ltd.
$$\begin{array} { | l | r | } \hline \text { Month } & \text { Sales Budget in Units } \\\hline \text { July } & 36,000 \\\hline \text { August } & 40,000 \\\hline \text { September } & 48,000 \\\hline \text { October } & 52,000 \\\hline \text { November } & 38,000 \\\hline \text { December } & 31,000 \\\hline\end{array}$$
The inventory of finished goods at the end of each month must be equal to 30% of the next month's sales. On June 30, the finished goods inventory totaled 16,800 units.
Each unit of product requires four pounds of material. The company has a policy of maintaining a material inventory at the end of each month equal to 25% of the next month's production needs.
This requirement was met on July 1 of the current year.
Required:
Prepare a budget showing the quantity of material to be purchased for August.

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Definitions:

Concrete Identifications

The process in early child development where children categorize objects and persons in their environment in a literal and straightforward manner.

Naming Conventions

Established rules for determining the names of things within a particular field or industry.

Abstract Information

Concepts or ideas that are not concrete or tangible but are understood intellectually or represent something symbolically.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.