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Production Budget Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales July 30,500
Production Budget
Palmgren Company produces consumer products. The sales budget for four months of the year is presented below.
Unit Sales | Dollar Sales | |
July | 30,500 | $990,000 |
August | 35,000 | 1,064,000 |
September | 41,000 | 1,203,000 |
October | 36,500 | 1,144,200 |
Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy.
Required:
Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
Palmgren Company | ||||
Production Budget | ||||
For the Third Quarter | ||||
July | August | September | Total | |
Unit sales | ||||
Total needed | ||||
Units produced |
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