Less: Beginning Inventory

Units Produced ______________________________________________________________________

Cleary Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows: Cleary anticipates selling 226,000 jars with total sales revenue of $262,000 in the first quarter of the year following the year given in the preceding table. Cleary has a policy that the ending inventory of jars must be 25% of the following quarter's sales. Total sales revenue Number of jars sold 1st quarter .... 154,500 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. 2nd quarter ... 3rd quarter .... 4th quarter .... $180,000 $216,000 $ 259,000 $198,000 181,000 212,000 163,500 Prepare the production budget by first calculating the total units needed, then calculate the units to produce. Cleary Foods Production Budget For the Quarters in the upcoming Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year For the Quarters in the Upcoming Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Unit sales Plus: Desired ending inventory Total needed