1. Asaboni Company Ltd, a manufacturer of shoes, plans to sell 2000 pairs of shoes next year (2023). The selling price is 100 per pair. The company assumes that all of the sales are cash sales and that sales are even in all quarters (Q).

The Quarterly and Annual sales budgets prepared for the year 2023 is as follows:

Q₁ Q₂ Q₃ Q₄ Total (Annual)

Budgeted sales (units) 500 500 500 500 2000

Selling price per unit (GH) 100 100 100 100 100

Budgeted sales (GH) 50,000 50,000 50,000 50,000 200,000

The closing inventory for Asaboni Ltd this year (2022) was budgeted (estimated) to be 100 pairs of shoes.

Management of Asaboni Ltd also wants to always have 50 pairs of shoes in closing inventory at the end of each Quarter in 2023 but would like to end the year 2023 with 150 pairs in inventory to start the year 2024.

Required:

Using the sales budget above as a limiting factor and all other relevant information, prepare Quarterly and Annual Production budget for Asaboni Company Ltd for the year 2022.