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A sales budget is given below for one of the products manufactured by the Rhys Hoskins Co.: Sales Budget in Units January February March 27,000
A sales budget is given below for one of the products manufactured by the Rhys Hoskins Co.: Sales Budget in Units January February March 27,000 42,000 67,000 47,000 37,000 32,000 April May June The inventory of finished goods at the end of each month must equal 23% of the next month's sales. On December 31, the finished goods inventory totaled 6,210 units. Each unit of product requires four specialized electrical switches. Since the production of these specialized switches by Rhys Hoskins' suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 35% of the next month's production needs. This requirement had been met on January 1 of the current year. Required: Prepare a production budget for January, February, March and April. (Input all amounts as positive values.) February January March April Budgeted sales Add: Desired ending inventory 42000 27000 67000 47000 Total needs Deduct: Beginning inventory Units to be produced Calculate the quantity of switches to be purchased each month for January, February, March and in total for the quarter. (Input all amounts as positive values.) February Quarter January March (Click to select) (Click to select) Total needs (Click to select) Required purchases
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