PRODUCTION BUDGET Jimison Inc. produces spiral-bound notebooks. The unit sales for the first four months of the

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PRODUCTION BUDGET Jimison Inc. produces spiral-bound notebooks. The unit sales for the first four months of the year for this product is as follows:

Unit Sales January 150,000 February 200,000 March 220,000 April 200,000 Company policy requires that ending inventories for each month be 15 percent of next month’s sales. However, at the beginning of January, due to greater sales in December than anticipated, the beginning inventory of notebooks is only 12,000.

Required:

Prepare a production budget for the first quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

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Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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