Garver Industries has budgeted the following unit sales: 
The finished goods units on hand on December 31, 2016, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2016.
Instructions
For the first quarter of 2017, prepare (1) a production budget and (2) a direct materials budget.
Definitions:
Creatine kinase
An enzyme found in the heart, brain, and skeletal muscle that when elevated, indicates muscle injury or stress.
Blood test
A medical procedure in which a blood sample is taken to be analyzed in a laboratory.
Gout
A medical condition characterized by an elevated uric acid level and recurrent acute arthritis.
Heart disease
A range of conditions that affect the heart, including coronary artery disease, heart rhythm problems (arrhythmias), and congenital heart defects.
Q22: Assume the Yogurt Division wants to purchase
Q22: In Zero Company's income statement, they report
Q25: A master budget is most useful in
Q41: The Deluxe Division, a profit center of
Q81: In the Goblette Manufacturing Company, indirect labor
Q91: Goliath Corporation is in the process of
Q109: In a make-or-buy decision, which costs can
Q120: A flexible budget is a series of
Q132: Performance reports for cost centers compare actual<br>A)
Q189: The number of direct labor hours needed