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The forecasted sales pertain to Maddie, Inc.: Fiscal Period Sales Quarter 1 $400,000 Quarter 2 500,000 Quarter 3 300,000 Quarter 4 200,000 Quarter 1 of
The forecasted sales pertain to Maddie, Inc.:
Fiscal Period | Sales |
---|---|
Quarter 1 | $400,000 |
Quarter 2 | 500,000 |
Quarter 3 | 300,000 |
Quarter 4 | 200,000 |
Quarter 1 of next year | 900,000 |
Collection pattern: 60 percent in month of sale; 40 percent in month following the sale
Accounts Receivable (Beginning Quarter 1):$70,000
Number of Units in Finished Goods Inventory (Beginning Quarter 1): 4,000
All company sales are for $20 per unit. The company plans to maintain ending inventories equal to 20 percent of the next quarter's sales.
How many units does Maddie expect to produce in Quarters 1 through 4? Do a production budget similar to the one found in Exhibit 9-13 in the textbook.
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