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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95850d65-ee14-4665-a949-2e865853615e%2Fac7ff8f0-6fcd-4d28-b075-3aaa860fd062%2F19trg07_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
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