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Aqua-pro Inc, produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows: Unit Sales April
Aqua-pro Inc, produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows: Unit Sales April 189,000 May 231,000 June 210,000 July 252,000 Company policy requires that ending Inventories for each month be 25% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000. Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total Aqua-pro Inc. Production Budget For the Second Quarter April May June Total Sales 189,000 231,000 210,000 630,000 Desired ending inventory 57,750 52,500 63,000 173.250 X Total neech 246,750 283,500 273,000 803,250 X Less: Beginning inventory -21.000 -57,750 -$2,500 -131,250 X Units produced 225.750 225,750 220,500 672.000
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