Production Budget Flashkick Company Manufactures and sells soccer balls for team

Question

Production Budget

Flashkick Company Manufactures and sells soccer balls for teams of children in elementary and high school. Flashkick's best selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Flashkick expects to sell the following:

___________Practice Balls_______________________Match Balls

_________Units_________selling price________units________selling price

January ___50,000_________$8.75__________7000___________$16.00

February___58000_________$8.75__________8000___________$16.00

March _____70000_________$8.75_________12000___________$16.00

April______100000_________$8.75_________18000___________$16.00

Flashkick requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 3,300 practice soccer balls and 400 match soccer balls.

Required

Construct a production budget for each of the two product lines for Flashkick Company for the first three months of the coming year.

Production budget for practice balls

Flashkick Company

Production Budget - Practice balls

For the first quarter of next year

_________________January______________February__________________March

unit sales____________?__________________?_______________________?

desired ending inventory__?_______________?________________________?

total needed__________?_________________?________________________?

Less: Beginning inventory____?____________?________________________?

unit produced______________?___________?_________________________?

Production budget for match balls:

Flashkick Company

Production Budget - Match Balls

_______________January___________February_______________March

unit sales________?__________________?_____________________?

desired ending inventory___?___________?_____________________?

Total needed_____?__________________?_____________________?

Less: Beginninng inventory____?________?_____________________?

Units produced________?_____________?______________________?

Explanation / Answer

Flashkick Company

Production Budget - Practice balls

For the first quarter of next year

Flashkick Company

Production Budget - Match balls

For the first quarter of next year

January February March Unit Sales 50,000 58,000 70,000 Desired ending inventory 11,600 (58,000*20%) 14,000 (70,000*20%) 20,000 (100,000*20%) Total needed 61,600 72,000 90,000 Less : Beginning inventory (3,300) (11,600) (14,000) Units produced 58,300 60,400 76,000

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