Tonga Toys manufactures and distributes a number of products to retailers. One

Tonga Toys manufactures and distributes a number of products to retailers. One of these products Playclay requires two pounds of material
A135 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter%u2014July August and September.
Peak sales of Playclay occur in the third quarter of each year. To keep production and shipments moving smoothly the company has the following
inventory requirements:

The finished goods inventory on hand at the end of each month must be equal to 8000 units plus 33% of the next month%u2019s sales. The
finished goods inventory on June 30 is budgeted to be 19880 units.

The raw materials inventory on hand at the end of each month must be equal to one-half of the following month%u2019s production needs for raw
materials. The raw materials inventory on June 30 for material A135 is budgeted to be 39300 pounds.

Prepare a production budget for Playclay for the months July August September and October. (Input all
amounts as positive values. Do not round intermediate calculations.)
(Click to select) Deduct Add : (Click to select) Ending inventory Beginning inventory (Click to select) Add Deduct : (Click to select) Ending inventory Beginning inventory
Prepare a direct materials budget showing the quantity of material A135 to be purchased for July August and September and for the quarter in
total. (Input all amounts as positive values. Do not round intermediate calculations.)
(Click to select) Add Deduct : (Click to select) Ending inventory Beginning inventory (Click to select) Deduct Add : (Click to select) Beginning inventory Ending inventory check my
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