Question
3 Production Budget (LO -9-3) Chrystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in
3 -
Production Budget (LO -9-3)
Chrystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:
Sales in Units
July30,000
August.45,000
September..60,000
October.50,000
The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next months sales. The inventory at the end of Jun was 3,000 units.
Required:
Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.
Production Budget (LO -9-3)
Chrystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:
| Sales in Units |
| July30,000 August.45,000 September..60,000 October.50,000 |
The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next months sales. The inventory at the end of Jun was 3,000 units.
Required:
Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.
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Financial Accounting
Authors: Dr. Larry M. Walther
1st Edition
1456352970, 9781456352974
