Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kimball Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $25. Kimball projects sales for April will be 5,000
Kimball Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $25. Kimball projects sales for April will be 5,000 packages, with sales increasing by 300 packages per month for May, June, and July. On April 1, Kimball has 225 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 Kimball for April, May, and June. Begin by preparing a sales budget for April, May, and June. Kimball Company Sales Budget April, May, and June April May June Total Budgeted packages to be sold 5,000 5,300 5,600 15,900 $ 25 $ 25 $ 25 Sales price per package $ 25 125,000 $ 132,500 $ 140,000 $ Total sales 397,500 Now prepare a production budget for April, May, and June. Kimball Company Production Budget April, May, and June April May June Total Budgeted packages to be sold 5000 5300 5600 15900 1060 1120 Plus: Desired packages in ending inventory Total packages needed Less: Packages in beginning inventory 6060 6420 Budgeted packages to be produced
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started