undefined

Coronado manufactures competition stunt kites. In November, Brian Lee prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. March Budgeted sales Desired ending inventory Kites needed Less beginning inventory Budgeted production January 40,000 7,000 47,000 4,000 43,000 February 32,000 6,000 38,000 7,000 31,000 35,000 2,400 37,400 6,000 31,400 Quarter 107,000 2,400 109,400 4,000 105,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 6,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 6,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Budgeted unit sales 40000 32000 35000 Budgeted ending inventory 8750 2400 1800 Total units required Beginning inventory Budgeted production Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 6,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Quarter 40000 32000 35000 10700 ry 8750 2400 1800 e Textbook and Media