Need help with the production budget, i added what i have so far. Sales BudgetUnit Sales0.1 Multiply; Sales price0.9 Total Sales RevType of SaleCash Sales 0.10Credit Sales 0.90duction BudgetUnit Sales (cases)Plus: Desired Ending inventoryTotal neededLess: Beginning inventory# of units to produceJULY$667.00 $ 690.00 $$735507,150.00$735490,245.00AUGUST SEPTEMBER OCTOBER NOVEMBER49,024.50 50,715.00441,220.50 456,435.00490,245.00507,150.00JULY747.50 $ 977.50 $ 1,150.00$735$735$735549,412.50 718,462.50845,250.0054,941.2571,846.25494,471.25 646,616.25549,412.50 718,462.5084,525.00760,725.00845,250.00AUGUST SEPTEMBER OCTOBER NOVEMBER 2. The company desires to have finished goods inventory on hand at the end of eachmonth equal to 12 percent of the following month's budgeted unit sales. Use the@ROUND function to round to the nearest whole number the number of jacketsdesired in ending inventory. On June 30, 2023, the company expects to have 55jackets on hand. Use the @ROUND function to round to the nearest wholenumber the number of jacket units to produce. Prepare a Production budget.(NOTE: an estimate of sales in October is required to complete the production budgetfor September).

Name: Need help with the production budget, i added what i have so far. Sale
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Description: Need help with the production budget, i added what i have so far. Sales BudgetUnit Sales0.1 Multiply; Sales price0.9 Total Sales RevType of SaleCash Sales 0.10Credit Sales 0.90duction BudgetUnit Sales (cases)Plus: Desired Ending inventoryTotal needed

Production budget is the budget prepared by the management to determine the number of units to produce in order to meet future production requirements. The quantity of units to produce is determined by estimating the possible inventory balance required at the end of the period and estimating sales to meet with respect to opening inventory balance.Production budget is prepared as follows:Resultant values:Note: the desired ending inventory for November is considered to be zero as there is no following estimated sales to compute the desired ending inventory.The units produce for:July: 694.80 unitsAugust: 698.10 unitsSeptember: 783.90 unitsOctober: 998.20 unitsNovember: 1012 units

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Accounting

2. The company desires to have finished goods inventory on hand at the end of each month equal to 12 percent of the following month's budgeted unit sales. Use the @ROUND function to round to the nearest whole number the number of jackets desired in ending inventory. On June 30, 2023, the company expects to have 55 jackets on hand. Use the @ROUND function to round to the nearest whole number the number of jacket units to produce. Prepare a Production budget. (NOTE: an estimate of sales in October is required to complete the production budget for September).

2. The company desires to have finished goods inventory on hand at the end of each month equal to 12 percent of the following month's budgeted unit sales. Use the @ROUND function to round to the nearest whole number the number of jackets desired in ending inventory. On June 30, 2023, the company expects to have 55 jackets on hand. Use the @ROUND function to round to the nearest whole number the number of jacket units to produce. Prepare a Production budget. (NOTE: an estimate of sales in October is required to complete the production budget for September).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Need help with the production budget, i added what i have so far.

Sales Budget
Unit Sales
0.1 Multiply; Sales price
0.9 Total Sales Rev
Type of Sale
Cash Sales 0.10
Credit Sales 0.90
duction Budget
Unit Sales (cases)
Plus: Desired Ending inventory
Total needed
Less: Beginning inventory
# of units to produce
JULY
$
667.00 $ 690.00 $
$735
507,150.00
$735
490,245.00
AUGUST SEPTEMBER OCTOBER NOVEMBER
49,024.50 50,715.00
441,220.50 456,435.00
490,245.00
507,150.00
JULY
747.50 $ 977.50 $ 1,150.00
$735
$735
$735
549,412.50 718,462.50
845,250.00
54,941.25
71,846.25
494,471.25 646,616.25
549,412.50 718,462.50
84,525.00
760,725.00
845,250.00
AUGUST SEPTEMBER OCTOBER NOVEMBER

2. The company desires to have finished goods inventory on hand at the end of each
month equal to 12 percent of the following month's budgeted unit sales. Use the
@ROUND function to round to the nearest whole number the number of jackets
desired in ending inventory. On June 30, 2023, the company expects to have 55
jackets on hand. Use the @ROUND function to round to the nearest whole
number the number of jacket units to produce. Prepare a Production budget.
(NOTE: an estimate of sales in October is required to complete the production budget
for September).

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