Bingham Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $25. Bingham projects sales for April will be 1,000 packages, with sales increasing by 100 packages per month for May, June, and July. On April 1, Bingham has 400 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Bingham for April, May, and June.

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Part 1 Begin by preparing a sales budget for April, May, and June.

Bingham Company
Sales Budget
April, May, and June
	April	May	June	Total
Budgeted packages to be sold	1,000	1,100	1,200	3,300
Sales price per package	$25	$25	$25	$25
Total sales	$25,000	$27,500	$30,000	$82,500

Part 2

Now prepare a production budget for April, May, and June.

Bingham Company
Production Budget
April, May, and June
		April	May	June	Total
Budgeted packages to be sold
Plus:	Desired packages in ending inventory
Total packages needed		1,110	1,220	1,330
Less:	Packages in beginning inventory
Budgeted packages to be produced