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PORE Budgeting A sales budget is given below for one of the products manufactured by the Borders Co mary February March April May Dune 20.000
PORE Budgeting A sales budget is given below for one of the products manufactured by the Borders Co mary February March April May Dune 20.000 units 35.000 unts 60,000 units 40,000 units 31,000 units 25,000 unit The inventory of finished goods at the end of each month should equal 10% of the next month's sales. However, on December 31 the finished goods myentory rolled only 1.000 Prepare a production budget for the first four months of the year ANSWER January February March April > Budgeted sales (units) Add Desired end ventory > > Total needs month's sales. However, on December 31 the finished goods toy talled only 1.000 22500 39100 The inventory of finished goods at the end of each month should equal 10 37500 Prepare a production budget for the fast four months of the year 58000 1000 ANSWER 3500 4000 January February March 6000 Budgeted sales (units) 3100 5000 Add: Desired ending inventory 6500 64000 Total needs 43100 41000 Deduct Beginning inventory 23500 > > > Units to be produced > > >
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