Kessler

Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for

$18.

Kessler

projects sales for

April

will be

5,000

packages, with sales increasing by

150

packages per month for

May,

June,

and

July.

On

April

1,

Kessler

has

300

packages on hand but desires to maintain an ending inventory of

20%

of the next month's sales. Prepare a sales budget and a production budget for

Kessler

for

April,

May,

and

June.

Begin by preparing a sales budget for

April,

May,

and

June.

Kessler Company
Sales Budget
April, May, and June
	April	May	June	Total
Budgeted packages to be sold	5,000	5,150	5,300	15,450
Sales price per package	$18	$18	$18	$18
Total sales	$90,000	$92,700	$95,400	$278,100

Now prepare a production budget for

April,

May,

and

June.

Kessler Company
Production Budget
April, May, and June
		April	May	June	Total
Budgeted packages to be sold		5000	5150	5300	15450
Plus:	Desired packages in ending inventory
Total packages needed
Less:	Packages in beginning inventory
Budgeted packages to be produced

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