value: 2.00 points Crystal Telecom has budgeted the sales of its innovative mobi

Question

value: 2.00 points Crystal Telecom has budgeted the sales of its innovative mobile phone over the next tour months as follows: The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next month's sales. The inventory at the end of June was 2,900 units. Required: Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total. (Do not round intermediate calculations. Input all amounts as positive values.)

Explanation / Answer

Crystal Telecom Production Budget Details July Aug Sep Quarter Budgeted sales in units      29,000    35,000      58,000     122,000 Opening Balance in units         2,900      3,500        5,800 Required Closing Balance in Units         3,500      5,800        5,400 Required Production in Units=Sales-opening balance+closing balance =      29,600    37,300      57,600     124,500

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