Larkspur Inc. has projected sales to be 18,000 units in January; 22,000 units in February; 14,000 units in March; 10,000 units in April; and 22,000 units in May. There are 600 units on hand on January 1. Management has determined that it needs to carry 20% of the following month's sales in ending inventory. Prepare a production budget for the first quarter, by month and in total. Production Budget Jan. Feb. Mar.

Larkspur Inc. has projected sales to be 18,000 units in January; 22,000 units in February; 14,000 units in March; 10,000 units in April; and 22,000 units in May. There are 600 units on hand on January 1. Management has determined that it needs to carry 20% of the following month's sales in ending inventory. Prepare a production budget for the first quarter, by month and in total. Production Budget Jan. Feb. Mar.

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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