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Concord manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quarter of the coming year. Desired ending inventory
Concord manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales Budgeted unit Sales Budgeted ending inventory Total units required Beginning inventory January February March Quarter 24,100 35,100 34100 3,200 6,800 2,680 2,680 1,120 41,90 36,68D 95,88D 7,020 6,800 4,820 29,880 91,060 26,300 34,880 Following higher-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had only 2,100 completed kites on hand. He decided that given the brisk sales in December, the company should increase its desired ending inventory level from 20 to 25 percent of the next month's sales volume. (a) Prepare a new production budget for the first quarter. (Round answers to 0 decimal places, eg. 5,275.) Budgeted unit sales 24,1 93,2 Budgeted ending Inventory 8,77 Total units required 2,87 Deginning inventory 4,92 7,02 6,80 Budgeted production 28,05 36,58 Version 4.24
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