金陵科技学院-管理会计（双语）Group Assignment - Example.pdfVIP

Lecture Example –Manufacturing Breakers Company is preparing budgets for the quarter ending June 30. Budgeted sales for the next five months are:  April 20,000 units  May 50,000 units  June 30,000 units  July 25,000 units  August 15,000 units. The selling price is $10 per unit. Breakers Co Sales Budget April May June Quarter Budgeted sales 20,000 50,000 30,000 100,000 (units) Selling price per unit $ 10 $ 10 $ 10 $ 10 Budgeted sales ($) $200,000 $ 500,000 $ 300,000 $ 1,000,000 All sales are on account. Breakers Company wants ending inventory to be equal to 20% of the following month’s budgeted sales in units. On March 31, 4,000 units were on hand. 6 Breakers Co Production Budget April May June Quarter Sales in units 20,000 50,000 30,000 100,000 Add : desired ending 10,000 6,000 5,000 5,000 inventory Total needs 30,000 56,000 35,000 105,000 Less: beginning 4,000 10,000 6,000 4,000 inventory Units to be produced 26,000 46,000 29,000 101,000 At Breakers Company, five kilos of material are required per unit of product. Breakers pays $0.40 per kilo for its materials.