Yosko Company expects to sell 2,000 units of finished product in January and 2,3

Question

Yosko Company expects to sell 2,000 units of finished product in January and 2,350 units in February. The company has 150 units on hand on January 1 and desires to have an ending inventory equal to 60% of the next month's sales. March sales are expected to be 2,470 units. Prepare Yosko's production budget for January and February.

Select the labels, enter the amounts and prepare the production budget for January. Then, prepare the production budget for February.

Yosko Company Production Budget Two Months Ended January 31 and February, 28 January Budgeted units to be sold Plus: Desired units in ending inventory Total units needed Less: Units in beginning inventory Budgeted units to be produced

Explanation / Answer

Production budget : January

Production budget : February

January Budgeted units to be sold 2000 Add: Desired units in ending inventory (2350*60%) 1410 Total units needed 3410 Less: Units in beginning inventory -150 Budgeted units to be produced 3260

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