Patrick Inc. makes industrial solvents. In the first 4 months of the coming year

Question

Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales:

Patrick's policy is to have 25% of next month's sales in ending inventory. On January 1, it is expected that there will be 6,700 drums of solvent on hand.

Required:

Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total.

January 41,000 February 38,000 March 50,000 April 51,000 CH9 HW March April Patrick's policy is to have 25% of next month's sales in ending inventory. On January 1, it is expected that there will be 6,700 drums of solvent on hand. 50,000 51,000 Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total Patrick Inc. Production Budget For the Coming Quarter FebruaryMarch 1st Quarter Total Sales 1,000 38,000 50,000 129,000 Desired ending inventory50012,50012750 Total needs Less: Beginning inventory Units to be produced 50,500 Feedback ?Check My Work Partially correct

Explanation / Answer

January February March 1st Quartr Total Sales 41000 38000 50000 129000 Desired Ending Inventory 9500 12500 12750 34750 Total needs 50500 50500 62750 163750 Less: Opening inventory 6700 9500 12500 28700 Units to be produced 43800 41000 50250 135050

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