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Can I please get help. Cathy's Cookies produces cookies for resale at local grocery stores. The company is currently in the process of establishing a
Can I please get help.
Cathy's Cookies produces cookies for resale at local grocery stores. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly sales (in units) were as follows (1 unit = 1 batch): First Quarter 8,000 Second Quarter 9,600 Third Quarter 12,000 Fourth Quarter 10,400 Unit sales are expected to increase 20 percent, and each unit is expected to sell for $5. Management prefers to maintain ending finished goods inventory equal to 15 percent of next quarter's sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 2,000 units. Required: A. Prepare a sales budget for Cathy's Cookies. B. Prepare a production budget for Cathy's Cookies. Your answers to this problem should be placed in the space below this line. A Cathy's Cookies Sales Budget Year Ending December 31 Quarter 1 2 3 4 Year Prior year sales, in units Increase of 20% Projected sales, in units Price per unit Budgeted sales, in dollars B Cathy's Cookies Production Budget Year Ending December 31 Quarter 1 2 3 4 Year Budgeted Sales in units Add desired ending finished goods inventory Total finished goods inventory needed Less beginning finished goods inventory Units to be producedStep by Step Solution
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