Snip and Chip Inc. sells silk upholstery curtains for $150 each. The project's budgeted unit sales for four months during the current year appear below:
|
February
|
$39,000
|
|
April
|
$42,000
|
|
May
|
$44,000
|
|
June
|
$40,000
|
Additional information:
- The project desires to have an inventory at the end of each month equal to 15 percent of the following month's budgeted unit sales.
- Each curtain requires 2.0 yards of fabric.
- At the end of each month, the project decides to have 20 percent of the production material required for the next month on hand.
- The fabric costs $25 per yard. Each curtain produced requires 1 hour of direct labor.
- The project pays $27 per hour to its employees.
Prepare the following budgets for the project:
- Production budget for the month of April
- Materials purchase budget for April
Submission Requirements:
- Font: Arial, Size: 12 point
- Length: 2-3 pages