Problem 1: Wood's Supply Corporation manufactures and sells cotton gauze. Expected sales of gauze (in boxes)...

Transcribed Image Text:

Problem 1: Wood's Supply Corporation manufactures and sells cotton gauze. Expected sales of gauze (in boxes) for upcoming months are as follows: June 38,000 July 32,000 August 40,000 September 33,000 October 36,000 November 37,000 December 39,000 Management likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales. The estimated finished goods inventory at the beginning of July is 3200 boxes of gauze. Required: Prepare the company's production budget for the third quarter of this year (the months of July, August and September). Include a column for each month and a total column for the entire quarter. Problem 1: Wood's Supply Corporation manufactures and sells cotton gauze. Expected sales of gauze (in boxes) for upcoming months are as follows: June 38,000 July 32,000 August 40,000 September 33,000 October 36,000 November 37,000 December 39,000 Management likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales. The estimated finished goods inventory at the beginning of July is 3200 boxes of gauze. Required: Prepare the company's production budget for the third quarter of this year (the months of July, August and September). Include a column for each month and a total column for the entire quarter.