Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Government Auditing Standards

Authors: U.S. Government Accountability Office

1st Edition

B0C9S8NVST, 979-8851147746

More Books

Students also viewed these Accounting questions