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Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows: Total

Foods produces specialty soup sold in 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. . . .

$187,000

155,000

2nd quarter. . .

$214,000

180,500

3rd quarter. . . .

$256,000

213,500

4th quarter. . . .

$195,000

161,000

AustenAusten

anticipates selling

220 comma 000220,000

jars with total sales revenue of

$ 265 comma 000$265,000

in the first quarter of the year following the year given in the preceding table.

AustenAusten

has a policy that the ending inventory of jars must be

2525%

of the following quarter's sales.

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.

Prepare the production budget by first calculating the total units needed, then calculate the units to produce.

Austen 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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