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Cozy Pillows makes decorative throw pillows for home use. The company sells the pillows to home decor retailers for $12 per pillow. Each pillow requires
Cozy Pillows makes decorative throw pillows for home use. The company sells the pillows to home decor retailers for $12 per pillow. Each pillow requires 1 20 yards of fabric, which the company obtains at a cost of $6 per yard. The company would like to maintain an ending stock of fabric equal to 10% of the next month's production requirements. The company would also like to maintain an ending stock of finished pillows equal to 20% of the next month's sales Sales (in units) are projected to be as follows for the first three months of the year (Click the icon to view the projected sales (in units) for the first three months of the year) Read the requirements Total sales 1.200,000 $ 2,160,000 $ 2.280,000 $ 5,640,000 Requirement 2. Prepare the production budget. Assume that the company anticipates selling 210,000 units in April (Round your answers to the nearest whole number) Cozy Pillows Production Budget For the Quarter Ended March 31 January February March 1st Quarter Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce More info 100,000 bu January February March 180,000 190,000 Print Done Sales Budget For the Quarter Ended March 31 January February March 1st Quarter 100,000 180,000 190,000 470,000 12 $ 12 $ 12 $ 12 Unit sales Unit selling price $ $ Total sales revenue 1,200,000 $ 2.160,000 $ 2,280,000 $ 5,640,000 Cash sales $ 120,000 $ 216,000 $ 1.944,000 228,000 $ 2,052,000 564,000 5,076,000 Credit sales 1,080,000 $ Total sales 1,200,000 $ 2,160,000 $ 2,280,000 $ 5,640,000
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