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Please help me. Thanks! Taffy's Cookies produces cookies for resale at local grocery stores. The company is currently in the process of establishing a master
Please help me. Thanks!
Taffy's Cookies produces cookies for resale at local grocery stores. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly sales were as follows (1 unit = 1 batch): C..L.... First Quarter 6,000 units Second Quarter 7,600 units Third Quarter 11,000 units Fourth Quarter 9,400 units 4... Unit sales are expected to increase 20 percent, and each unit is expected to sell for $6. Management prefers to maintain ending finished goods inventory equal to 12 percent of next quarter's sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 1,700 units. Required: A. Prepare a sales budget for Taffy's Cookies. B. Prepare a production budget for Taffy's Cookies. C..I... A Taffy's Cookies Sales Budget Year Ending December 31 ..L... .... Quarter 1 2 3 4 Year Prior year sales, in units .... Increase of 20% Projected sales, in units Price per unit Budgeted sales, in dollars Taffy's Cookies Production Budget Year Ending December 31 Quarter 1 2 3 4 Year Budgeted Sales in units ...L.. ..... Add desired ending finished goods inventory Total finished goods inventory needed Less beginning finished goods inventory Units to be producedStep by Step Solution
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