Question
Gable Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows:
Gable 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 Gable anticipates selling 223,000 jars with total sales revenue of $264,000 in the first quarter of the year following the year given in the table to the left. Gable has a policy that the ending inventory of jars must be 25% of the following quarter's sales. 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.... $183,000 154,000 2nd quarter $217,000 184,500 3rd quarter $259,000 4th quarter $194,000 211,000 161,000 Prepare the production budget by first calculating the total units needed, then calculate the units to produce. Gable Foods Production Budget For the Upcoming Year Quarter 1 Unit sales 154000 Quarter 2 184500 Quarter 3 Quarter 4 211000 161000 Year 710500 46125 52750 40250 55750 194875 Desired ending inventory Total needed 200125 237250 251250 216270 905375 Less: Beginning inventory Units to produce
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