Production and purchases budgets Caleb Corp. has prepared the 8919

Production and purchases budgets
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:


Prepare a production and purchases budget for each semiannual period of 2014.

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Production Budget - 2014:


Caleb Corp. 
Production Budget 
For the Year 2014 
January-June 
July-December 
Total 
Sales budget 



Ending inventory 



Beginning inventory 



Production 







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Material A Purchases Budget - 2014:


Caleb Corp. 
Material A Purchases Budget 
For the Year 2014 
January-June 
July-December 
Total 
Production 



Number of pounds 



Production budget 



Ending inventory 



Beginning inventory 



Purchases 



Times cost per pound 
$ 
$ 
$ 
Total cost 
$ 
$ 
$ 




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Material B Purchases Budget - 2014:


Caleb Corp. 
Material B Purchases Budget 
For the Year 2014 
January-June 
July-December 
Total 
Production 



Number of gallons 



Production budget 



Ending inventory 



Beginning inventory 



Purchases 



Times cost per gallon 
$ 
$ 
$ 
Total cost 
$ 
$ 
$