Guthrie Company
Guthrie Company manufactures three products (A, B, and C) from three raw materials (X, Y, and Z). The following table indicates the number of pounds of each material that is required to manufacture each type of product:
The company has a policy of maintaining an inventory of finished goods on all three products equal to 25 percent of the next month's budgeted sales. Listed below is the sales budget for the first quarter of the current year:
Refer to Guthrie Company. Assuming that the company meets its required inventory policy, prepare a production budget for the first 2 months of the current year for each of the three products.
Correct Answer:
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