Question
Hoffman Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows:
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Hoffman
Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows:
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| Total sales revenue | Number of jars sold |
|---|---|---|
| 1st quarter. . . | $180,000 | 152,000 |
| 2nd quarter. . . | $215,000 | 181,000 |
| 3rd quarter. . . | $259,000 | 211,000 |
| 4th quarter. . . | $197,000 | 164,500 |
Hoffman
anticipates selling
221,000
jars with total sales revenue of
$264,000
in the first quarter of the year following the year given in the preceding table.
Hoffman
has a policy that the ending inventory of jars must be
30%
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.
| Hoffman Foods | |||||
| Production Budget | |||||
| For the Quarters in the Upcoming Year | |||||
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| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
| Unit sales | 152000 | 181000 | 211000 | 164500 | 708500 |
| Plus: Desired ending inventory |
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| Total needed |
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| Less: Beginning inventory |
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| Units to produce |
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Financial Finesse An Accounting Guide For Entrepreneurs
Authors: TaShara Ramese
1st Edition
1732510903, 978-1732510906
