Question
Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 60,400 units.
Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 60,400 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 302,000 units; third quarter, 437,000 units; and fourth quarter, 219,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 20% of the next quarter's budgeted sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.
Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 60,400 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 302,000 units; third quarter, 437,000 units; and fourth quarter, 219,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 20% of the next quarter's budgeted sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.
ELECTRO COMPANY Production Budget Second and Third Quarters Second Quarter Budgeted ending inventory (units) Budgeted unit sales for quarter Required units of available production Third Quarter Units to be producedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started