Production Budget Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows: Unit Sales April May June July 300,000 Company policy requires that ending inventories for each month be 25% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000. Required: 225,000 275,000 250,000 Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total. Aqua-pro Inc. Production Budget For the Second Quarter Sales Desired ending inventory Total needs Less: Beginning inventory Units produced April May June Total
Production Budget Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows: Unit Sales April May June July 300,000 Company policy requires that ending inventories for each month be 25% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000. Required: 225,000 275,000 250,000 Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total. Aqua-pro Inc. Production Budget For the Second Quarter Sales Desired ending inventory Total needs Less: Beginning inventory Units produced April May June Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Production Budget
Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year
are as follows:
Unit Sales
April
May
June
July
300,000
Company policy requires that ending inventories for each month be 25% of next month's sales. However, at the beginning
of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000.
Required:
225,000
275,000
250,000
Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each
month as well as for the quarter in total.
Aqua-pro Inc.
Production Budget
For the Second Quarter
Sales
Desired ending inventory
Total needs
Less: Beginning inventory
Units produced
April May June Total
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