Company is preparing budgets for the quarter ending June 30, 2019. Budgeted sales in units for the next five months are:

Question

Company is preparing budgets for the quarter ending June 30, 2019.
Budgeted sales in units for the next five months are:
April 20,000
May 50,000
June 30,000
July 25,000

Required:
a. Prepare Sales budget for April, May & June assuming selling price per unit is 15.

b. Prepare production budget for April, May & June if the company wishes ending inventory as 10 % of next month sales units.

in progress 0
Sigridomena 5 years 2021-08-07T14:26:14+00:00 1 Answers 21 views 0

Answers ( )

  1. minhkhang
    0
    2021-08-07T14:27:54+00:00
    Reply

    Answer:

    Results are below.

    Step-by-step explanation:

    First, we need to determine the sales budget for April, May, and June:

    Sales budget April:

    Number of units sold= 20,000

    Sales revenue= 20,000*15= $300,000

    Sales budget May:

    Number of units sold= 50,000

    Sales revenue= 50,000*15= $750,000

    Sales budget June:

    Number of units sold= 30,000

    Sales revenue= 30,000*15= $450,000

    Now, the production budget using the following formula:

    Production= sales + desired ending inventory – beginning inventory

    Production budget April:

    Sales= 20,000

    Desired ending inventory= 50,000*0.1= 5,000

    Beginning inventory= 0 (assuming no beginning inventory)

    Production= 25,000

    Production budget May:

    Sales= 50,000

    Desired ending inventory= 30,000*0.1= 3,000

    Beginning inventory= (5,000)

    Production= 48,000

    Production budget June:

    Sales= 30,000

    Desired ending inventory= 25,000*0.1= 2,500

    Beginning inventory= (3,000)

    Production= 29,500

Leave an answer

Browse

Giải phương trình 1 ẩn: x + 2 - 2(x + 1) = -x . Hỏi x = ? ( )