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Sheridan manufactures competition stunt kites. In November, Steven Garcia prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 45,000 32,000 35,000 112,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 52,000 38,000 37,400 114,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 48,000 31,000 31,400 110,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Quarter >>

Sheridan manufactures competition stunt kites. In November, Steven Garcia prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 45,000 32,000 35,000 112,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 52,000 38,000 37,400 114,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 48,000 31,000 31,400 110,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Quarter >>

FINANCIAL ACCOUNTING
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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Sheridan manufactures competition stunt kites. In November, Steven Garcia prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 45,000 32,000 35,000 112,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 52,000 38,000 37,400 114,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 48,000 31,000 31,400 110,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Quarter
Transcribed Image Text:Sheridan manufactures competition stunt kites. In November, Steven Garcia prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 45,000 32,000 35,000 112,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 52,000 38,000 37,400 114,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 48,000 31,000 31,400 110,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Quarter
Sheridan manufactures competition stunt kites. In November, Steven Garcia prepared the following production budget for the first quarter of the coming year. Desired ending inventory is båsed on the following month's budgeted sales. Live January February March Quarter Budgeted sales uck! 45,000 32,000 35,000 112,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 52,000 38,000 37,400 114,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 48,000 31.000 31,400 110,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Budgeted unit sales Total units required Budgeted production Budgeted ending inventory Beginning inventory
Transcribed Image Text:Sheridan manufactures competition stunt kites. In November, Steven Garcia prepared the following production budget for the first quarter of the coming year. Desired ending inventory is båsed on the following month's budgeted sales. Live January February March Quarter Budgeted sales uck! 45,000 32,000 35,000 112,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 52,000 38,000 37,400 114,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 48,000 31.000 31,400 110,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Budgeted unit sales Total units required Budgeted production Budgeted ending inventory Beginning inventory
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