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Donaldson Foods produces specialty soup sold in jars. The projected sales in dollars Donaldson anticipates selling 220,000 jars with total sales revenue of $261,000 in
Donaldson Foods produces specialty soup sold in jars. The projected sales in dollars Donaldson anticipates selling 220,000 jars with total sales revenue of $261,000 in the and jars for each quarter of the upcoming year are as follows first quarter of the year following the year given in the preceding table. Donaldson has a policy that the ending inventory of jars must be 25% of the following quarter's sales Total sales revenue $188,000 $216,000 $254,000 $198,000 Number of jars sold 50,500 180,000 212,500 164,500 Requirement Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in total 1st quarter 2nd quarter 3rd quarter 4th quarter Prepare the production budget by first calculating the total units needed, then calculate the units to produce. Donaldson Foods Production Budget For the Quarters in the Upcoming Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce
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