Problem 2 (15 points): Stratosphere, Inc. has the following budgeted sales for t

Question

Problem 2 (15 points): Stratosphere, Inc. has the following budgeted sales for the next quarter. onth: anuary Februarv Marc nits 10,00011,000 12,00 Inventory of finished goods on hand at the beginning of the quarter is 4,000 units. The company desires to maintain ending inventory equal to 20% of next month's sales. Sales for April are expected to be 14,000 units. Calculate the quantity to be produced during January, February, and March. Problem 3 (10 porntsg xpects the following units to produce. Each unit requires 5 dze Manufacturing exp Beri yards of material. ya ending tion Calculate the Direct Material Budget for January and February. Beginning inventory in January is 15,000 yards. al. Each yard of material costs $10. Beridze wants to maintain ventory of 30% of nextmonth's material needs to cover next month's Month: January February Ma 10,000 11,000 12,00

Explanation / Answer

2) Production budget :

January February March Sales units 10000 11000 12000 Add: Desired ending inventory 2200 2400 2800 Total 12200 13400 14800 Less: Beginning inventory -4000 -2200 -2400 Production units 8200 11200 12400

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