EXERCISE 9-2 Production Budget Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in Units 30,000 45,000 60,000 50,000 The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month inventories of finished goods must equal 10% of the July.. August . September. October ... next month's sales. The inventory at the end of June was 3,000 units. Required: Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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EXERCISE 9-2 Production Budget
Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months
as follows:
Sales in Units
30,000
45,000
60,000
50,000
The company is now in the process of preparing a production budget for the third quarter. Past
experience has shown that end-of-month inventories of finished goods must equal 10% of the
July.
August.
September.
October ..
next month's sales. The inventory at the end of June was 3,000 units.
Required:
Prepare a production budget for the third quarter showing the number of units to be produced
each month and for the quarter in total.
Transcribed Image Text:EXERCISE 9-2 Production Budget Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in Units 30,000 45,000 60,000 50,000 The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month inventories of finished goods must equal 10% of the July. August. September. October .. next month's sales. The inventory at the end of June was 3,000 units. Required: Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.
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