Question
Sales Budget For the Year Ended December 31, 2021 Quarter 1 2 3 4 Year Expected Unit Sales 3000 3500 3400 4100 18000 Unit Selling
| Sales Budget | |||||
| For the Year Ended December 31, 2021 | |||||
| Quarter | |||||
| 1 | 2 | 3 | 4 | Year | |
| Expected Unit Sales | 3000 | 3500 | 3400 | 4100 | 18000 |
| Unit Selling Price | $60 | $60 | $60 | $60 | $60 |
| Total Sales | $180,000 | $210,000 | $204,000 | $246,000 | $840,000 |
| Prodution Budget | |||||
| For the Year Ended December 31, 2021 | |||||
| Quarter | |||||
| 1 | 2 | 3 | 4 | ||
| Expected Unit Sales | 3000 | 3500 | 3400 | 4100 | |
| Add: Desired ending finished goods units | 1050 | 1020 | 1230 | 3000 | |
| Total Required units | 4050 | 4520 | 4630 | 7100 | |
| Less: Beginning finished goods units | 1000 | 1050 | 1020 | 1230 | |
| Required production units | 3050 | 3470 | 3610 | 5870 | 16000 |
The desired finished inventory in any quarter is 30% of the projected sales of the next quarter. The desired ending inventory of direct materials in any quarter is 10% of what is needed to produce the units in the next quarter. Based on the information above, if projected sales for quarter 3 in decreased by 600 units to 4000 units, what will be the Required production units in the second AND third quarter?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Basic Accounting Concepts Principles And Procedures Volume 1
Authors: Gregory Mostyn, Worthy And James
2nd Edition
0991423100, 978-0991423101
