Caleb Corp. has prepared the following unit sales forecast for


Question Description:

24.99

Caleb Corp. has prepared the following unit sales forecast for 2014: Estimated ending Finished Goods Inventories are 50,000 units at December 31, 2013; 72,000 units at June 30, 2014; and 120,000 units at December 31, 2014. In manufacturing a unit of this product, Caleb Corp. uses 3 pounds of Material A and 0.75 gallons of Material B. Materials A and B cost, respectively, $2.50 per pound and $1.80 per gallon. The company carries no Work in Process Inventory. Ending inventories of direct material are projected as follows: december 31, 2013 june 30, 2014 december 31,2014 Material A 240,000 270000 284000 Material B 90000 70000 76000 Prepare a production and purchases budget for each semiannual period of 2014.

Answer

24.99