Question
Avery Picture Frames, Inc. is preparing its master budget for the 3 rd quarter ending June 30. The following sales units were forecasted for this
Avery Picture Frames, Inc. is preparing its master budget for the 3rd quarter ending June 30. The following sales units were forecasted for this 3rd quarter. In addition to the budgets sales in units for these months, the forecasted sales in units for July were 55,000 units.
| April | May | June |
Sales in units | 62,000 | 59,000 | 60,000 |
The company wants to end each month with ending finished goods inventory equal to 20% of next months forecasted sales in units. Ending inventory from March is 17,800 units.
Prepare the production budget for April, May and June. Round each units up to the nearest whole unit (no decimals).
| April | May | June |
Budgeted sales in units
|
|
|
|
Add: Desired ending inventory
|
|
|
|
Required units
|
|
|
|
Less: Ending inventory from prior period
|
|
|
|
Units to produce |
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started