Below is the sales budget (in units) of ABS Co. for the second half of 2021: July: 100,000 August: 90,000 September: 90,000 October: 80,000 November: 70,000 December: 70,000. The company's projection is to have inventory on hand at end of each month equal to 70% of sales of next month. It is assumed that inventory at end of June 2021 will meet this requirement and that 80,000 units will be sold in Jan. 2022.What is the total production budget in units for the 6 months' period ending December 31,2021? 479,000 486,000 524,000 556,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Below is the sales budget (in units) of
ABS Co. for the second half of 2021:
July: 100,000 August: 90,000
September: 90,000 October: 80,000
November: 70,000 December:
70,000. The company's projection is
to have inventory on hand at end of
each month equal to 70% of sales of
next month. It is assumed that
inventory at end of June 2021 will
meet this requirement and that
80,000 units will be sold in Jan.
2022.What is the total production
budget in units for the 6 months'
period ending December 31,2021?
479,000
486,000
524,000
556,000
Transcribed Image Text:Below is the sales budget (in units) of ABS Co. for the second half of 2021: July: 100,000 August: 90,000 September: 90,000 October: 80,000 November: 70,000 December: 70,000. The company's projection is to have inventory on hand at end of each month equal to 70% of sales of next month. It is assumed that inventory at end of June 2021 will meet this requirement and that 80,000 units will be sold in Jan. 2022.What is the total production budget in units for the 6 months' period ending December 31,2021? 479,000 486,000 524,000 556,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education