Question
Noel Enterprises has budgeted sales in units for the next five months as follows: January 6,500 units February 5,500 units March 7,200 units April 4,500
Noel Enterprises has budgeted sales in units for the next five months as follows:
| January | 6,500 units | |
| February | 5,500 units | |
| March | 7,200 units | |
| April | 4,500 units | |
| May | 3,600 units | |
| Month: . | ||
| Sales - Units | ||
| EI Next Mth | ||
| Required | ||
| Less: BI | ||
| To be produced . | ||
Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on December 31 contained 450 units. The company needs to prepare a production budget for the first quarter of the year.
a.. What should the opening inventory be in units for April?
b.. What is the total number of units to be produced in February?
- What is the desired ending inventory for February? For the quarter ending March 31?
- Provide the following for the first calendar quarter A quarter is 3 months-
Total sales
Beginning inventory
Ending inventory
Total production
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
