Help Save & Exit Submit Budget Exercise Check my work Blue Wave Co predicts the

Question

Help Save & Exit Submit Budget Exercise Check my work Blue Wave Co predicts the following unit sales for the coming four months: September, 4,000 units: October, 5,000 units; November, 7000 units, and December, 7600 units. The company's policy s to martan finished goods inventory equal to 60% of the next mo nth's sales. At the end of August, the company had 2,400 finished units on hancd. Prepare a production budget for each of the months of September, October, and November Production Budget October and November Next month's budgrted sales (urits) Unts to be produced C Prev 3 of 8 Next>

Explanation / Answer

Blue Wave Co. Production Budget September, October and November September October November Next month’s budgeted sales 5000 7000 7600 Ratio of inventory to future sales x 60% x 60% x 60% Budgeted ending inventory 3000 4200 4560 Add: Budgeted sales 4000 5000 7000 Required units of available production 7000 9200 11560 Less: Beginning inventory 2400 3000 4200 Units to be produced 4600 6200 7360 I have tried my best for correct solution, still you need any further help please ask in comment

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