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Q. Problem Key Co. manufactures beanies. The budgeted units to be produced also sold are below:
Expected Production Expected SalesAugust 3,100 2,900September 2,800 3,900
It takes 24 yards of yarn to produce a beanie. The organization's policy to maintain yarn at the end of each month equal to 5% of the next month's production needs also to maintain a finished goods inventory at the end of each month equal to20% of next month's anticipated sales.
The cost of yarn is $0.20 a yard. At August 1, 3,720 yards of yarn were on hand.
In good form, prepare a materials purchases budget for the August in the space provided.
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