Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am unsure of what is supposed to go in total columns? Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4

I am unsure of what is supposed to go in total columns?

Preparing a Production Budget

Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales:

January 41,000

February 38,000

March 50,000

April 51,000

Patrick's policy is to have 19% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,550 drums of solvent on hand.

Required:

Fill in production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If required, round your answers to the nearest whole unit.

Patrick Inc.

Production Budget

For the Coming Quarter

Jan. Feb. March 1st qtr total

Sales 41000 38000 50000 129000

Desired ending inventory 7220 9500 9690

Total Needs 48220 47500 59960

Less: Beginning inventory 4550 7220 9500

Units to be produced

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick

6th Edition

1259105482, 9780071338820

More Books

Students also viewed these Accounting questions

Question

Describe the differences between a Resume / CV and a Cover Letter.

Answered: 1 week ago