Question 2

Kessler Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $18. Kessler projects sales for April will be 4,500 packages, with sales increasing by 500 packages per month for May, June, and July. On April 1, Kessler has 250 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Kessler for April, May, and June. Begin by preparing a sales budget for April, May, and June Kessler Company Sales Budget April, May, and June April May June Total Budgeted packages to be sold Sales price per package Total sales Now prepare a production budget for April, May, and June. Kessler Company Production Budget April, May, and June April May June Total Plus: Total packages needed Less: Budgeted packages to be produced