Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales: January February 41,000 38,000 50,000 51,000 March April Patrick's policy is to have 23% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,350 drums of solvent on hand. Required: Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If requ round your answers to the nearest whole unit. Patrick Inc. Production Budget For the Coming Quarter 1st Quarter Total
Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales: January February 41,000 38,000 50,000 51,000 March April Patrick's policy is to have 23% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,350 drums of solvent on hand. Required: Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If requ round your answers to the nearest whole unit. Patrick Inc. Production Budget For the Coming Quarter 1st Quarter Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales:
January
February
March
April
Patrick's policy is to have 23% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,350 drums of solvent on hand.
41,000
38,000
50,000
51,000
Required:
Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If required
round your answers to the nearest whole unit.
Patrick Inc.
Production Budget
For the Coming Quarter
Line Item Description
Sales
Desired ending inventory
Total needs
Less: Beginning inventory
Units to be produced
January February March
41,000 38,000 50,000
8,740
9,430
11,500
50,430
4,350
46,740
61,500
1st Quarter
Total
129,000
29,670
158,670
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