ABC Company estimates that 2014-unit sales will be 12,000 in quarter 1, 16,000 in quarter 2, and 20,000 in quarter 3, at a unit selling price of 30. Management desires to have ending finished goods inventory equal to 15% of the next quarter's expected unit sales. Prepare the sales and production budget by quarter for the first six months of 2014. 6 Months 6 Months 6 Months Sale Units 12,000 16,000*15% 20,000*15% Add: ending finished goods Total required Units Less: Beg finished Goods Productions

ABC Company estimates that 2014-unit sales will be 12,000 in quarter 1, 16,000 in quarter 2, and 20,000 in quarter 3, at a unit selling price of 30. Management desires to have ending finished goods inventory equal to 15% of the next quarter's expected unit sales. Prepare the sales and production budget by quarter for the first six months of 2014. 6 Months 6 Months 6 Months Sale Units 12,000 16,00015% 20,00015% Add: ending finished goods Total required Units Less: Beg finished Goods Productions

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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