Production Budget Aqua-pro Inc. produces submersible water pumps for ponds and c

Question

Production Budget Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows: Unit Sales April 180,000 May 220,000 June 200,000 July 240,000 Company policy requires that ending inventories for each month be 25% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000. Required: Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total. April May une July Company policy requires that ending inventories for each month be 25% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000 180,000 220,000 200,000 240,000 Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total. Aqua-pro Inc. Production Budget For the Second Quarter June Total Sales Desired ending inventory Total needs Less: Beginning inventory Units produced Check My Work Previous Next

Explanation / Answer

April May June Sales 1,80,000 2,20,000 2,00,000 Desired ending Inventory 55,000 50,000 60,000 Total Needs 2,35,000 2,70,000 2,60,000 Less: Beginning Inventory 21,000 55,000 50,000 Units Procuced 2,14,000 2,15,000 2,10,000

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