Palmgren Company produces consumer products. The sales budget for four months of the year is presented below.   Unit Sales Dollar Sales July 31,000     $975,000     August 33,500     1,062,600     September 38,500     1,207,000     October 35,500     1,144,300     Company policy requires that ending inventories for each month be 25 percent of next month’s sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Palmgren Company produces consumer products. The sales budget for four months of the year is presented below.

  Unit Sales Dollar Sales
July 31,000     $975,000    
August 33,500     1,062,600    
September 38,500     1,207,000    
October 35,500     1,144,300    

Company policy requires that ending inventories for each month be 25 percent of next month’s sales. At the beginning of July, the beginning inventory of consumer products met that policy.

Required:

Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

Palmgren CompanyProduction BudgetFor the Third Quarter

  July August September Total
Unit sales fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4
 
- Select - - Select - - Select - - Select -
Total needed fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13
 
- Select - - Select - - Select - - Select -
Units produced fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in the blank 22
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