Question
Epic Foods produces specialty soup sold in mason jars. The projected sales in dollars and jars for each quarter of the upcoming year are as
Epic Foods produces specialty soup sold in mason jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows:
|
| Total sales revenue | Number of jars sold |
| 1st quarter (2021) | $182,000 | 150,000 |
| 2nd quarter(2021) | $210,000 | 180,500 |
| 3rd quarter(2021) | $251,000 | 213,500 |
| 4th quarter(2021) | $195,000 | 164,500 |
Epic anticipates selling 223,000 jars with total sales revenue of $265,000 in the first quarter of the year (2022) following the year given in the table above. Epic has a policy that the ending inventory of jars must be 30% of the following quarters sales. Prepare a production budget for the year that shows the number of jars to be produced each quarter and the year in total.
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Accounting Business Reporting For Decision Making
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond
7th Edition
0730369323, 9780730369325
