Anderson Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the company year are as follows: 1st Quarter: Total sales revenue: $189,000, Number of jars sold: 152,500. 2nd Quarter: Total sales revenue: $217,000, Number of jars sold: 183,000. 3rd quarter: Total sales revenue: $217,000, Number of jars sold: 212,000. 4th quarter: Total sales revenue: $199,000, Number of jars sold: 164,500.

Anderson anticipates selling 226,000 jars with total sales revenue of $264,000 in the first quarter of the year following the year given in the preceding table. Anderson 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.

Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Unit sales
Plus: Desired ending inventory
Total needed
Less: Beginning inventory
Units to produce

Answer rating: 100% (QA)

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