Check my work 2 Down Under Products, Ltd., of Australia has budgeted sales of it
ID: 2516536 • Letter: C
Question
Check my work 2 Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows April May June July Unit Sales 68,000 80,000 108,000 89,000 10 points eBook The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of month inventory levels must equal 10% of the following month's unit sales. The inventory at the end of March was 6,800 units. Hint Print Required Prepare a production budget by month and in total, for the second quarter References Down Under Products, Ltd., Production Budget April May June Quarter Budgeted units sales Total needs Required production in unitsExplanation / Answer
Solution:
Production Budget
April
May
June
Quarter
Budgeted units sales
68,000
80,000
108,000
Plus: Desired Ending Inventory
(10% of Next Month's unit sales)
8,000
10,800
8,900
(July Sales Unit 89,000 * 10%)
Total Needs
76,000
90,800
116,900
Less: Estimated Beginning Inventory
(Ending Inventory of last month)
6,800
(given)
8,000
(April Ending Inventory is the beginning inventory of May)
10,800
(May Ending Inventory is the beginning inventory of June)
Required Production in units
69,200
82,800
106,100
258,100
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Production Budget
April
May
June
Quarter
Budgeted units sales
68,000
80,000
108,000
Plus: Desired Ending Inventory
(10% of Next Month's unit sales)
8,000
10,800
8,900
(July Sales Unit 89,000 * 10%)
Total Needs
76,000
90,800
116,900
Less: Estimated Beginning Inventory
(Ending Inventory of last month)
6,800
(given)
8,000
(April Ending Inventory is the beginning inventory of May)
10,800
(May Ending Inventory is the beginning inventory of June)
Required Production in units
69,200
82,800
106,100
258,100