I need this assignment within 3 hours. It’s a spreadsheet that was started but I need help with the corrections, according to the Professor. This is what she said.
You are definitely on the right track. You have the unit’s production amounts 100% correct, great job!!!!
For the material purchase budget, you have the right production requirements and the required for production lbs. (the 2nd line). Prior to calculating any dollar figures let’s first determine the amount you need to purchase. For instance, using July used 99,360 in production, you need to determine your desired ending inventory. That will give you your total needs, then you subtract out your beginning inventory balance and that gives you want you need to purchase. Then you can take that amount and multiply it by the cost and that will give you the final amount. And you would repeat this for the other months.