Question
Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales: January
Preparing a Production Budget
Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales:
| January | 41,000 |
| February | 38,000 |
| March | 50,000 |
| April | 51,000 |
Patrick's policy is to have 19% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,550 drums of solvent on hand.
Required:
Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If required, round your answers to the nearest whole unit.
| Patrick Inc. | ||||
| Production Budget | ||||
| For the Coming Quarter | ||||
| January | February | March | 1st Quarter Total | |
| Sales | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 |
| Desired ending inventory | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 |
| Total needs | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| Less: Beginning inventory | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 |
| Units to be produced | fill in the blank 17 | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 |
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Horngrens Accounting
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
12th edition
978-0134674681
