De Silva Inc. produces submersible water pumps for ponds and cisterns. The unit sales for the first
Question:
De Silva Inc. produces submersible water pumps for ponds and cisterns. The unit sales for the first four months of the year for this product are as follows:
............................................Unit Sales
January .................................180,000
February ...............................220,000
March ....................................200,000
April ........................................240,000
Company policy requires that ending inventories for each month be 25 percent of next month's sales. However, at the beginning of January, due to greater sales in December than anticipated, the beginning inventory of pumps is only 21 ,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.
Step by Step Answer:
Cornerstones of Managerial Accounting
ISBN: 978-0176721237
3rd Canadian edition
Authors: Maryanne Mowen, Don Hanson, Dan Heitger, David McConomy, Bradley Witt, Jeffrey Pittman