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Tatum Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $ 3 5 . Tatum Company projects sales for

Tatum Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $35. Tatum Company projects sales for April will be 5,500 packages, with sales increasing by 350 packages per month for May, June, and July. On April 1, Tatum Company has 400 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Tatum Company for April, May, and June.
Begin by preparing a sales budget for April, May, and June.
Now prepare a production budget for April, May, and June.
\table[[\table[[Tatum Company],[Production Budget],[April, May, and June]]],[,April,May,June,Total],[Budgeted packages to be sold,5,500,5,850,6,200,17,550],[Plus: Desired packages in ending inventory,585,620,655,],[Total packages needed,6,085,6,470,6,855,],[Less: Packages in beginning inventory,,,,],[Budgeted packages to be produced,,??,??,]]
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