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:

Hoffman anticipates selling $223,000$ jars with total sales revenue of $$260,000$ 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