Production Budget Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales July 33,000 $980,000 August 35,000 1,061,700 September 38,000 1,208,000 October 36,500 1,143,000 Company policy requires that ending inventories for each month be 20 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 Company Production Budget For the Third Quarter July August September Total Unit sales Total needed Units produced
Production Budget Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales July 33,000 $980,000 August 35,000 1,061,700 September 38,000 1,208,000 October 36,500 1,143,000 Company policy requires that ending inventories for each month be 20 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 Company Production Budget For the Third Quarter July August September Total Unit sales Total needed Units produced
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Production Budget
Palmgren Company produces consumer products. The sales budget for four months of the year is presented below.
Unit Sales
Dollar Sales
July
33,000
$980,000
August
35,000
1,061,700
September
38,000
1,208,000
October
36,500
1,143,000
Company policy requires that ending inventories for each month be 20 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 Company
Production Budget
For the Third Quarter
July August September Total
Unit sales
Total needed
Units produced
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