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YeahYeah Company expects to sell 1 comma 8501,850 units of finished product in J

ID: 2567245 • Letter: Y

Question

YeahYeah

Company expects to sell

1 comma 8501,850

units of finished product in

JanuaryJanuary

and

2 comma 2502,250

units in

FebruaryFebruary.

The company has

180180

units on hand on

JanuaryJanuary

1 and desires to have an ending inventory equal to

4040%

of the next month's sales.

MarchMarch

sales are expected to be

2 comma 2702,270

units. Prepare

YeahYeah's

production budget for

JanuaryJanuary

and

FebruaryFebruary.

Select the labels, enter the amounts and prepare the production budget for

JanuaryJanuary.

Then, prepare the production budget for

FebruaryFebruary.

Yeah Company

Production Budget

Two Months Ended January 31 and February, 28

January

Budgeted units to be sold

Plus:

Desired units in ending inventory

Total units needed

Less:

Units in beginning inventory

Budgeted units to be produced

Yeah Company

Production Budget

Two Months Ended January 31 and February, 28

Explanation / Answer

Solution:

Production Budget

Production Budget

January

February

Budgeted Units to be sold

1850

2250

Plus: Desired Units in ending inventory

900

(2250*40%)

908

(2270*40%)

Total units needed

2750

3158

Less: Units in beginning inventory

180

900

Budgeted units to be produced

2570

2258

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Production Budget

January

February

Budgeted Units to be sold

1850

2250

Plus: Desired Units in ending inventory

900

(2250*40%)

908

(2270*40%)

Total units needed

2750

3158

Less: Units in beginning inventory

180

900

Budgeted units to be produced

2570

2258