E22-24 preparing an operating budget- sales and production budgets Gorman Compan

Question

E22-24 preparing an operating budget- sales and production budgets
Gorman Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $35. Gorman projects sales for April will be 5,500 packages, with sales increasing by 450 packages per month for May, June, and July. On April 1, Gorman has 125 packages on hand but desires to maintain an ending inventory of 10% of the next months sales. Prepare a sales budget and a production budget for Gorman for April, May, and June.
May pkg. produced 5995 E22-24 preparing an operating budget- sales and production budgets
Gorman Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $35. Gorman projects sales for April will be 5,500 packages, with sales increasing by 450 packages per month for May, June, and July. On April 1, Gorman has 125 packages on hand but desires to maintain an ending inventory of 10% of the next months sales. Prepare a sales budget and a production budget for Gorman for April, May, and June.
May pkg. produced 5995
Gorman Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $35. Gorman projects sales for April will be 5,500 packages, with sales increasing by 450 packages per month for May, June, and July. On April 1, Gorman has 125 packages on hand but desires to maintain an ending inventory of 10% of the next months sales. Prepare a sales budget and a production budget for Gorman for April, May, and June.
May pkg. produced 5995

Explanation / Answer

April May June Sales Budget 5500 5950 6400 Opening Inventory 125 595 640 Ending Inventory 595 640 685 Production Budget 5970 5995 6445

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