Question
Elkhardt produces a vitamin-enhanced dog food that is sold in Kansas. The company expects sales to be 13,500 bags in January, 15,100 bags in February,
Elkhardt produces a vitamin-enhanced dog food that is sold in Kansas. The company expects sales to be 13,500 bags in January, 15,100 bags in February, 15,400 bags in March, and 18,100 bags in April. There are 1,250 bags on hand at the start of January. Elkhardt desires to maintain monthly ending inventory equal to 15 percent of next months expected sales. Prepare the production budget for Elkhardt for the months of January, February, and March.
| Elkhardt Production Budget For the months of January, February, and March | ||||
| January | February | March | Quarter | |
| Unit salesTotal neededUnits to be producedDesired ending inventory of finished unitsBeginning inventory of finished units | ||||
| LessAdd :Units to be producedUnit salesTotal neededDesired ending inventory of finished unitsBeginning inventory of finished units | ||||
| Unit salesBeginning inventory of finished unitsUnits to be producedDesired ending inventory of finished unitsTotal needed | ||||
| AddLess :Beginning inventory of finished unitsUnit salesUnits to be producedDesired ending inventory of finished unitsTotal needed | ||||
| Beginning inventory of finished unitsUnits to be producedUnit salesDesired ending inventory of finished unitsTotal needed |
| |||
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Puzzling Auditing Puzzles
Authors: Janice P. Russell
1st Edition
0873894782, 978-0873894784
