The ABC Company Ltd. expects the following sales by months in units for the first six months of next year. 5400 January February March 5700 7500 5700 6000 4500 The company has a policy of maintaining an inventory equal to budgeted sales for the following two months. The beginning inventory reflects this policy. Each unit costs AED 10. April May June You are required to prepare purchases budget for March and April months both in units and Dirham (AED).

The ABC Company Ltd. expects the following sales by months in units for the first six months of next year. 5400 January February March 5700 7500 5700 6000 4500 The company has a policy of maintaining an inventory equal to budgeted sales for the following two months. The beginning inventory reflects this policy. Each unit costs AED 10. April May June You are required to prepare purchases budget for March and April months both in units and Dirham (AED).

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...

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Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months 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.
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
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Do not include the month of May in solving. Do it nicely.
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