Question
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
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