Exam 20: Master Budgets and Performance Planning

Kabuki Company's policy is to have 16% of the next month's sales as desired ending inventory.Estimated sales are shown in the following table.Given this data,what are Kabuki's estimated purchases for April? March April May Expected sales units 9,400 8,900 7,300

Budgeting is an informal plan for future business activities.

Fairway's April sales forecast projects that 6,000 units will sell at a price of $10.50 per unit.The desired ending inventory is 30% higher than the beginning inventory,which was 1,000 units.Budgeted purchases of units in April would be:

Reference: 20_04 Kyoto, Inc. predicts the following sales in units for the coming four months: April May June July Sales in units 240 280 300 240 Although each month's ending inventory of finished units should be 60% of the next month's sales, the March 31 finished goods inventory is only 100 units. A finished unit requires five pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month's ending inventory of raw materials should be 30% of the following month's production needs. -Kyoto's budgeted production for May is: