I need help with the second part of the question. How do do I find the desired p

Question

I need help with the second part of the question. How do do I find the desired packages and beginning packages?

Krause Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $14. Krause projects sales for April will be 3,000 packages, with sales increasing by 500 packages per month for May, June, and July. On Apn 1. Krause has 350 packages on hand but desires to main ain an ending inventory of 20% o he next month's sales. Prepare a sales budget and a production budget or Krause or April May, and June Begin by preparing a sales budget for April, May, and June Krause Company Sales Budget April, May, and June April May June Total 3,000 3,500 4,000 10,500 Budgeted packages to be sold Sales price per package Total sales 14 $ 42,00049,000$56,000$ 147,000

Explanation / Answer

Desired packages in ending inventory: April 700 =3500*20% May 800 =4000*20% June 900 =4500*20% April May June Total Budgeted packages to be sold 3000 3500 4000 10500 Plus: Desired packages in ending inventory 700 800 900 900 Tota packages needed 3700 4300 4900 11400 Less: Packages in beginning inventory 350 700 800 350 Budgeted packages to be produced 3350 3600 4100 11050

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