Expected sales for tents at Sandy\'s Camping Gear are 4,200, 6,100, 2,200, 3,400

Question

Expected sales for tents at Sandy's Camping Gear are 4,200, 6,100, 2,200, 3,400, and 5,300 for the next five quarters. At the end of the current year, inventory of finished tents on hand is 500 tents. Sandy's has a desired ending inventory of 10 percent of next quarter's sales.

Create the production budget in numbers of tents for quarters one through four for the coming year. (Amounts to be deducted should be indicated with a minus sign.)

Sandy's Camping Gear
Budgeted Production
Q1 Q2 Q3 Q4
Expected sales 4,200 6,100 2,200 3,400

Add: Desired ending inventory 610 220 340 530

Less: Beginning inventory


Production in number of tents

Explanation / Answer

Sandy's camping gear Budgeted production Q1 Q2 Q3 Q4 Expected sales 4200 6100 2200 3400 Add Desired ending inventory 610 220 340 530 Less beginning inventory 500 610 220 340 Production in number of tents 4310 5710 2320 3590

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