Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for

$ 22$22.

KesslerKessler

projects sales for

AprilApril

will be

3 comma 0003,000

packages, with sales increasing by

400400

packages per month for

MayMay,

JuneJune,

and

JulyJuly.

On

AprilApril

1,

KesslerKessler

has

175175

packages on hand but desires to maintain an ending inventory of

1010%

of the next month's sales. Prepare a sales budget and a production budget for

KesslerKessler

for

AprilApril,

MayMay,

and

JuneJune.

Begin by preparing a sales budget for

AprilApril,

MayMay,

and

JuneJune.

Kessler Company
Sales Budget
April, May, and June
	April	May	June	Total
Budgeted packages to be sold	3,000	3,400	3,800	10,200
Sales price per package	$22	$22	$22	$22
Total sales	$66,000	$74,800	$83,600	$224,400

Now prepare a production budget for

AprilApril,

MayMay,

and

JuneJune.

Kessler Company
Production Budget
April, May, and June
		April	May	June	Total
Budgeted packages to be sold		3,000	3,400	3,800	10,200
Plus:	Desired packages in ending inventory
Total packages needed
Less:	Packages in beginning inventory
Budgeted packages to be produced