Blue Wave Company budgets the following unit sales for the next four months: September, 3,800 units; October, 4,200 units; November, 6,500 units; and December, 8,400 units. The company's policy is to maintain finished goods inventory equal to 70% of the next month's unit sales. At the end of August, the company had 2,660 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. BLUE WAVE COMPANY Production Budget 人 September October November Budgeted sales units Add: Desired ending inventory 3,800 4,200 6,500 Next period budgeted sales units 4,200 6,500 8,400 Ratio of inventory to future sales 70% 70% 70% t Desired ending inventory units Total required units 0 Less: Beginning inventory units 2,660 2,660 2,660 nces Units to produce

Blue Wave Company budgets the following unit sales for the next four months: September, 3,800 units; October, 4,200 units; November, 6,500 units; and December, 8,400 units. The company's policy is to maintain finished goods inventory equal to 70% of the next month's unit sales. At the end of August, the company had 2,660 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. BLUE WAVE COMPANY Production Budget 人 September October November Budgeted sales units Add: Desired ending inventory 3,800 4,200 6,500 Next period budgeted sales units 4,200 6,500 8,400 Ratio of inventory to future sales 70% 70% 70% t Desired ending inventory units Total required units 0 Less: Beginning inventory units 2,660 2,660 2,660 nces Units to produce

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 4EA: One Device makes universal remote controls and expects to sell 500 units in January, 800 in...

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