Kessler Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $25. Kessler projects sales for April will be 4,500 packages, with sales increasing by 300 packages per month for May, June, and July. On April 1, Kessler has 225 packages on hand but desiresto maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Kessler for April, May, and June.Begin by preparing a sales budget for April, May, and June.Kessler CompanySales BudgetApril, May, and JuneAprilMayBudgeted packages to be soldSales price per packageTotal sales$Budgeted packages to be sold4,500Now prepare a production budget for April, May, and June.4,80025 $112,500 $ 120,000Plus:Total packages neededLess: Packages in beginning inventoryBudgeted packages to be producedDesired packages in ending inventory25 $Kessler CompanyProduction BudgetApril, May, and JuneAprilJune5,10025 $$$ 127,500MayTotal14,40025360,000JuneTotal

Production budget is prepared at the beginning of the period that shows the units purchased,…

Answered: Begin by preparing a sales budget for…

Business

Accounting

Begin by preparing a sales budget for April, May, and June.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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