Austen Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: (Click the icon to view additional information.) Inventory at the start of the year was 350 planters. The desired inventory of planters at the end of each month should be equal to 10% of the following month's budgeted sales. Each planter requires two pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.25 per pound. Read the requirements. Requirement 1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. Austen Manufacturing Production Budget For the Months of January through March Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce January February March Quarter Data table January February March April .... .... ... May.. Number of planters to be sold 3,500 3,400 3,600 4,000 - 4,200 - X Part 1. Production Budget For the months of January through March January February 3,500 3,400 Unit sales Add: desired ending inventory Total Less: beginning (350) inventory Units to produce 3,490 3,840 3,400*10% = 340 3,600*10% = 360 4,000*10% 400 1,100 3,760 (340) March 3,600 3,420 4,000 (360) Total 10,500 3,640 11,600 (1,050) 10,550
Austen Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: (Click the icon to view additional information.) Inventory at the start of the year was 350 planters. The desired inventory of planters at the end of each month should be equal to 10% of the following month's budgeted sales. Each planter requires two pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.25 per pound. Read the requirements. Requirement 1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. Austen Manufacturing Production Budget For the Months of January through March Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce January February March Quarter Data table January February March April .... .... ... May.. Number of planters to be sold 3,500 3,400 3,600 4,000 - 4,200 - X Part 1. Production Budget For the months of January through March January February 3,500 3,400 Unit sales Add: desired ending inventory Total Less: beginning (350) inventory Units to produce 3,490 3,840 3,400*10% = 340 3,600*10% = 360 4,000*10% 400 1,100 3,760 (340) March 3,600 3,420 4,000 (360) Total 10,500 3,640 11,600 (1,050) 10,550
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
please solve for jan feb march quater correct this circle data please fast 30 min left
Transcribed Image Text:Austen Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of
the planters each month to be as follows:
(Click the icon to view additional information.)
Inventory at the start of the year was 350 planters. The desired inventory of planters at the end of each month should be equal to 10% of the following month's budgeted sales. Each planter
requires two pounds of polypropylene (a type of plastic). The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The
polypropylene costs $0.25 per pound.
Read the requirements.
Requirement 1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter.
Austen Manufacturing
Production Budget
For the Months of January through March
Unit sales
Plus: Desired ending inventory
Total needed
Less: Beginning inventory
Units to produce
January February March
Quarter
Data table
January
February
March
April
....
....
...
May..
Number of planters to be sold
3,500
3,400
3,600
4,000
- 4,200
- X
Transcribed Image Text:Part 1.
Production Budget
For the months of January through March
January
February
3,500
3,400
Unit sales
Add: desired
ending inventory
Total
Less: beginning
(350)
inventory
Units to produce 3,490
3,840
3,400*10% = 340 3,600*10% = 360 4,000*10% 400 1,100
3,760
(340)
March
3,600
3,420
4,000
(360)
Total
10,500
3,640
11,600
(1,050)
10,550
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