Gable Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows:

Gable anticipates selling 222,000 jars, with total sales revenue of \($261,000\) in the first quarter of the year following the year given in the preceding table. The company has a policy that the ending inventory of jars must be 25% of the following quarter’s sales.

Requirement:

Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in total.

Transcribed Image Text:

1st quarter. 2nd quarter 3rd quarter 4th quarter. Total sales revenue $186,000 Number of jars sold 152,500 $216,000 182,500 $255,000 214,000 $190,000 165,000