Question

PART B 19. Jackson Inc. produces clay toys. The production budget for the next four months is: July 50,000 units August 70,000 units September 75,000 units October 80,000 units -7- Each toy requires one pound (1 lbs.) of clay. Jackson Inc.'s ending inventory policy for clay is 50% of next month's production needs. On July 1 clay inventory was expected to be 25,000 pounds. Clay is expected to cost $2.00 per pound. Prepare a raw material budget for clay purchase showing the expected cost of clay purchase in Quarter 3 (July, August, and September)? (Complete the following table) (14 points) Clay Purchase Budget for Quarter 3 ITEM July August September Quarter Total Budgeted Production (units of toys) 50,000 70,000 75,000 195,000

          PART B
19. Jackson Inc. produces clay toys. The production budget for the next four months is:
July
50,000 units
August
70,000 units
September
75,000 units
October
80,000 units
-7-
Each toy requires one pound (1 lbs.) of clay. Jackson Inc.'s ending inventory policy for clay is 50% of next
month's production needs. On July 1 clay inventory was expected to be 25,000 pounds. Clay is expected
to cost $2.00 per pound. Prepare a raw material budget for clay purchase showing the expected cost of
clay purchase in Quarter 3 (July, August, and September)? (Complete the following table) (14 points)
Clay Purchase Budget for Quarter 3
ITEM
July
August
September
Quarter
Total
Budgeted Production (units of toys)
50,000
70,000
75,000
195,000

PART B
19. Jackson Inc. produces clay toys. The production budget for the next four months is:
July
50,000 units
August
70,000 units
September
75,000 units
October
80,000 units
-7-
Each toy requires one pound (1 lbs.) of clay. Jackson Inc.'s ending inventory policy for clay is 50% of next
month's production needs. On July 1 clay inventory was expected to be 25,000 pounds. Clay is expected
to cost 2.00 per pound. Prepare a raw material budget for clay purchase showing the expected cost of
clay purchase in Quarter 3 (July, August, and September)? (Complete the following table) (14 points)
Clay Purchase Budget for Quarter 3
ITEM
July
August
September
Quarter
Total
Budgeted Production (units of toys)
50,000
70,000
75,000
195,000

Added by Sharon L.

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