alam Company makes a ‘gula melaka’ chocolate mix. In the first 4 months of coming year, Talam expects the following unit sales: Months Unit January 22,000 February 20,000 March 30,000 April 31,000 Talam’s policy is to have 20% of next month’s sales in ending inventory. On 1 January, it is expected that there will be 1,300 boxes of the chocolate mixture on hand. Required: Prepare a production budget for the first quarter of the year. Show the boxes that should be produced each month as well as for the quarter of total.
alam Company makes a ‘gula melaka’ chocolate mix. In the first 4 months of coming year, Talam expects the following unit sales: Months Unit January 22,000 February 20,000 March 30,000 April 31,000 Talam’s policy is to have 20% of next month’s sales in ending inventory. On 1 January, it is expected that there will be 1,300 boxes of the chocolate mixture on hand. Required: Prepare a production budget for the first quarter of the year. Show the boxes that should be produced each month as well as for the quarter of total.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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alam Company makes a ‘gula melaka’ chocolate mix. In the first 4 months of coming year, Talam expects the following unit sales:
| Months | Unit |
| January | 22,000 |
| February | 20,000 |
| March | 30,000 |
| April | 31,000 |
Talam’s policy is to have 20% of next month’s sales in ending inventory. On 1 January, it is expected that there will be 1,300 boxes of the chocolate mixture on hand.
Required:
Prepare a production budget for the first quarter of the year. Show the boxes that should be produced each month as well as for the quarter of total.
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