(Production and purchases budgets) Aurora Products has prepared the following
unit sales forecast for 2000:
|
January–June |
July–December |
Total |
|
|
Sales |
380,000 |
420,000 |
800,000 |
Estimated ending finished goods inventories are 30,000 units at December 31, 1999; 76,000 units at June 30; and 90,000 units at December 31, 2000. In manufacturing each unit of this product, Aurora Products uses five pounds of Material A and three gallons of Material B. The company carries no Work in Process Inventory. Direct material ending inventories are projected as follows:
|
December 31, 1999 |
June 30, 2000 |
December 31, 2000 |
|
|
Material A (in pounds) |
200,000 |
250,000 |
300,000 |
|
Material B (in gallons) |
140,000 |
160,000 |
200,000 |
Prepare a production and purchases budget for each semiannual period of 2000.