Crane manufactures competition stunt kites. In November, Mark Harris prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 40,000 33,000 36,000 109,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 47,000 39,000 38,400 111,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 43,000 32,000 32,400 107,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March > > > > >
Crane manufactures competition stunt kites. In November, Mark Harris prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 40,000 33,000 36,000 109,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 47,000 39,000 38,400 111,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 43,000 32,000 32,400 107,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March > > > > >
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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
Transcribed Image Text:Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the
company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its
desired ending inventory level from 20 to 15% of the next month's sales volume.
(a) Prepare a new production budget for the first quarter.
January
February
March
Quarter
eTextbook and Media
Save for Later
Attempts:O of 5 used
Suhmit Annwer
>
>
>
>

Transcribed Image Text:Crane manufactures competition stunt kites. In November, Mark Harris prepared the following production budget for the first
quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales.
January
February
March
Quarter
Budgeted sales
40,000
33,000
36,000
109,000
Desired ending inventory
7,000
6,000
2,400
2,400
Kites needed
47,000
39,000
38,400
111,400
Less beginning inventory
4,000
7,000
6,000
4,000
Budgeted production
43,000
32,000
32,400
107,400
Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the
company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its
desired ending inventory level from 20 to 15% of the next month's sales volume.
(a) Prepare a new production budget for the first quarter.
January
February
March
>
>
>
>
>
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