Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blue Wave Company budgets the following unit sales for the next four months: September, 3,200 units; October, 4,400 units; November, 6,700 units; and December, 8,400

Blue Wave Company budgets the following unit sales for the next four months: September, 3,200 units; October, 4,400 units; November, 6,700 units; and December, 8,400 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 3,000 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Less: Beginning inventory units Units to produce BLUE WAVE CO. Production Budget September % October % November %
image text in transcribed
Blue Wave Company budgets the following unit sales for the next four months: September, 3,200 units; October, 4,400 units; November, 6,700 units; and December, 8,400 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 3,000 finished units in inventory. Prepare a production budget for each of the months of September, October, and November

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting

Authors: Frank Wood, Alan Sangster

9th Edition

0273655523, 9780273655527

Students also viewed these Accounting questions

Question

Describe the differences between multinational and global firms.

Answered: 1 week ago