Meadow Company produces hand tools. A sales budget for the next four months is a

Question

Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,300 units, April 13,900, May 16,900 and June 21,700. Meadow Company’s ending finished goods inventory policy is 15% of the following month’s sales. March 1 beginning inventory is projected to be 1,545 units. How many units will be produced in March?

Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,300 units, April 13,900, May 16,900 and June 21,700. Meadow Company's ending finished goods inventory policy is 15% of the ollowing month's sales. March 1 beginning inventory s projected to be l 545 units. H . many units i e u n ? 13,900 O 10,840 O 9.760 O 10,300

Explanation / Answer

1) units produced in March expected sale units 10,300 Add: Ending inventory (13,900*15%) 2085 total needs 12,385 less: opening inventory (10300*15%) -1545 units produced 10,840 answer marlow 2) budgeted inventory for march is 13,540*15% 2031 answer 3) Grover cash receipts for march march sales (137000*60%)= 82200 Feb sales (129000*40%)= 51600 cash receipts for march 133800 answer

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