pg dn LEARNING OUTCOME # 3-Prepare Production Budget Pristine Yards Manufacturin

Question

pg dn LEARNING OUTCOME # 3-Prepare Production Budget Pristine Yards Manufacturing produces weed whackers. On March 31, Pristine Yards Manufacturing had 144 weed whackers in inventory. The company has a policy that the ending inventory in any month must be 12% of the following month's expected sales. Pristine Yards Manufacturing expects to sell the following number of weed whackers in each of the next four months: 1,200 weed whackers 2.550 weed whackers 1,700 weed whackers 1.200 weed whackers July a production budget for the second quarter, with a column for each month and for the quarter. Enter your solution in the yellow cells below. Pristine Yards Manufacuring Production Budget For the Months April through June April June Quarter Unit Sales Plus: Desired Ending 30 L 2oy l y 12 Total Needed Less: Beginning inventory Units to Produce | ) | 30

Explanation / Answer

Production budget :

April May June Quarter Unit Sales 1200 2550 1700 5450 Add: Desired ending inventory 306 204 144 144 Toal needed 1506 2754 1844 5594 Less; Beginning inventory -144 -306 -204 -144 Units to produce 1362 2448 1640 5450

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