Q1. Joanne Company shows the following estimates for sales for the third quarter of its upcoming fiscal year: July August September Q3 Sales 15000 14000 13500 The company requires inventory on hand equal to 15% of the next month’s expected sales. The company expects to begin July with 10000 units in inventory. The expected sales for October are 16,000. Prepare the production budget.
Q1. Joanne Company shows the following estimates for sales for the third quarter of its
upcoming fiscal year:
|
|
July |
August |
September |
Q3 |
|
Sales |
15000 |
14000 |
13500 |
|
The company requires inventory on hand equal to 15% of the next month’s
expected sales.
The company expects to begin July with 10000 units in inventory. The expected sales for October are 16,000. Prepare the production budget.
Q2. Nutri Drinks Inc. makes a nutrition additive for store bought soft drinks and expects to sell 4,000 units in January, 9,000 in February, 3,500 in March, 5,700 in April, and 4,900 in May. The required ending inventory is 15% of the next month’s sales, and the beginning inventory on January 1 was 0 units. Prepare a production budget for the first four months of the year.
Q3. The Sleep Well Company sells custom airplane sleeping accessories for $215 each. It expects sales of 5,000 units in quarter 1 and a 15% increase each subsequent quarter for the next 4 quarters. Prepare a sales budget by quarter for the first year.
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