Question
9#1 Preston Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as
9#1
Preston
Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows:
|
| Total sales revenue | Number of jars sold |
|---|---|---|
| 1st quarter. . . . | $185,000 | 151,500 |
| 2nd quarter. . . | $218,000 | 183,500 |
| 3rd quarter. . . | $258,000 | 215,000 |
| 4th quarter. . . | $190,000 | 161,000 |
.....
Preston
anticipates selling
225,000
jars with total sales revenue of
$264,000
in the first quarter of the year following the year given in the preceding table.
Preston
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.
Prepare the production budget by first calculating the total units needed, then calculate the units to produce.
| Preston Foods | |||||
| Production Budget | |||||
| For the Quarters in the Upcoming Year | |||||
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| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
| Unit sales |
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| Plus: Desired ending inventory |
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| Total needed |
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| Less: Beginning inventory |
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| Units to produce |
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Fair Value Measurement Practical Guidance And Implementation
Authors: Mark L. Zyla
3rd Edition
1119191238, 9781119191230
