Vineyard corporation, a manufacturer of fine wines, began the year with 20,000 bottles in inventory. The company estimated the budgeted slaes for the the 4th quarters of of the current year to be 200,000 bottles, 150,000 bottles, 250,000 bottles, and 400,000 bottles. The management feels that an ending inventory of 10% of subsequent quarter's sales is appropriate. What are the production needs for the 1st quarter? My teacher says it is budgeted sales of 200,000 + 15,000 ending inventory-20,000 beginning inventory=195,000 The part I don't understand is how did he get 15,000 as ending inventory? Help.

Vineyard corporation, a manufacturer of fine wines, began the year with 20,000 bottles in inventory. The company estimated the budgeted slaes for the the 4th quarters of of the current year to be 200,000 bottles, 150,000 bottles, 250,000 bottles, and 400,000 bottles. The management feels that an ending inventory of 10% of subsequent quarter's sales is appropriate. What are the production needs for the 1st quarter? My teacher says it is budgeted sales of 200,000 + 15,000 ending inventory-20,000 beginning inventory=195,000 The part I don't understand is how did he get 15,000 as ending inventory? Help.

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 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

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