Sales Budget

Budget Unit Sales Budgeted Unit Price. Budgeted Sales Dollars

April 2019 20,100 27.50 52,750

May 2019. 18,900 27.50. 519,750

June 2019 19,700 27.50 541,750

Total for the quarter. 58,700 1,614,250

Question:

Is the company seasonal or steady during the summer months?

Production Budget

April May June Total

Next Month's Budgeted Sales (Units). 18,900 19,700 20,100

Ratio of inventory to future sales 70% 70% 70%

Budgeted ending inventory (units). 13,230 13,790 14,070

Budgeted units sales fro month 20,100 18,900 19,700

Required units of available production 33,330 32,690 33,770

Beginning inventory (units) 14,070 13,230 13,790

Units to be produced 19,260. 19,460 19,980 58,700

Question:

How does the ending inventory compare to the beginning inventory? How does the transferred in costs compare to the COGM (or the transferred) costs? What does this mean about a company's forecasted production.