Production Budget True Tab Inc. produces a small and large version of its popula

Question

Production Budget True Tab Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: The finished goods inventory estimated for July 1, 2017, for the small and large scale models is 1,800 and 2,200 units, respectively. The desired finished goods inventory for July 31, 2017, for the small and large scale models is 1,500 and 2,500 units, respectively. Prepare a production budget for the small and large scales for the month ended July 31, 2017.

Explanation / Answer

Production budget :

Unit small scale Unit large scale Expected units to be sold 81000 146000 Ending Inventory 1500 2500 TotAL 82500 148500 Less:Beginning inventory - 1800 - 2200 Units to be produced 80700 146300

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