Production Budget Liang Company produces wheelbarrows. The unit sales for selected months of the year are as follows: April May June July Unit Sales Required: 126,000 154,000 140,000 168,000 Company policy requires that ending inventories for each month be 20% of next month's sales. However, at the beginning of April, due to greater sales. in March than anticipated, the beginning inventory of wheelbarrows is only 12,000. 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.

Production Budget Liang Company produces wheelbarrows. The unit sales for selected months of the year are as follows: April May June July Unit Sales Required: 126,000 154,000 140,000 168,000 Company policy requires that ending inventories for each month be 20% of next month's sales. However, at the beginning of April, due to greater sales. in March than anticipated, the beginning inventory of wheelbarrows is only 12,000. 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.

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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