Exercise 10-6 Duffy Dog produces a vitamin-enhanced dog food that is sold in Kan

Question

Exercise 10-6 Duffy Dog produces a vitamin-enhanced dog food that is sold in Kansas. The company expects sales to be 13,900 bags in January, 14,400 bags in February, 11,700 bags in March, and 14,000 bags in April. There are 1,290 bags on hand at the start of January. Duffy Dog desires to maintain monthly ending inventory equal to 15 percent of next month's expected sales. Prepare the production budget for Duffy Dog for the months of January, February, and March. Duffy Dog Production Budget For the months of January, February, and March January February March Quarter

Explanation / Answer

Duffy Dog Production Budget For the month of jan feb march Jan Feb March Quarter Unit Sales                              13,900                                14,400                               11,700                    40,000 Add : Desired Ending Inventory                                2,160                                   1,755                                 2,100                      6,015 Total Needed                              16,060                                16,155                               13,800                    46,015 Less : Begning Inventory                                1,290                                   2,160                                 1,755                      5,205 Unit to be Produced                              14,770                                13,995                               12,045                    40,810

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