Blossom Company estimates that unit sales will be 8,000 in quarter 1, 11,200 in quarter 2, 12,000 in quarter 3, and 14,400 in quarter 4. The sales price is $70 per unit. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2022. Expected Unit Sales Add V: Desired Ending Finished Goods Inventory Total Required Units Less Beginning Finished Goods Inventory Required Production Units BLOSSOM COMPANY Production Budget For the Six Months Ending June 30, 2022 1 8000 2800 10800 Quarter 2 11200 3000 14200 Six Months

Blossom Company estimates that unit sales will be 8,000 in quarter 1, 11,200 in quarter 2, 12,000 in quarter 3, and 14,400 in quarter 4. The sales price is $70 per unit. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2022. Expected Unit Sales Add V: Desired Ending Finished Goods Inventory Total Required Units Less Beginning Finished Goods Inventory Required Production Units BLOSSOM COMPANY Production Budget For the Six Months Ending June 30, 2022 1 8000 2800 10800 Quarter 2 11200 3000 14200 Six Months

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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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

Blossom Company estimates that unit sales will be 8,000 in quarter 1, 11,200 in quarter 2, 12,000 in quarter 3, and 14,400 in quarter 4. The sales price is $70 per unit. Management
desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales.
Prepare a production budget by quarters for the first 6 months of 2022.
Expected Unit Sales
Add V: Desired Ending Finished Goods Inventory
Total Required Units
Less V: Beginning Finished Goods Inventory
Required Production Units
BLOSSOM COMPANY
Production Budget
For the Six Months Ending June 30, 2022 V
1
8000
2800
10800
Quarter
D
11200
3000
14200
Six Months

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