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Production Budget Aqua-Pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows: Unit
Production Budget Aqua-Pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows: Unit Sales April 225,000 May 275,000 June 250,000 July 300,000 Company policy requires that ending inventories for each month be 20% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pump is only 29,000. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below HHH un Open spreadsheet Required: Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total Required: Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total Aqua-pro Inc. Production Budget For the Second Quarter April May June Q2 Sales 225,000 275,000 250,000 750,000 Desired ending inventory 55,000 50,000 60,000 60,000 Total needs 170,000 X 225,000 x 190,000 X 690,000 X Less: Beginning 29,000 55,000 29,000 50,000 inventory Units 141 x 170 X 140 x 161 X produced Feedback
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