Willow Products expects the following sales of its single product: Willow Produc

Question

Willow Products expects the following sales of its single product:

     

Willow Products desires an ending finished goods inventory to be equal to 10% of the next month’s sales needs. Actual March 1 inventory is projected to be 560 units.

Required:
Prepare a production budget for Willow Products for as many months as is possible.

Units March 5,600 April 6,700 May 7,750 June 8,200 July 9,400 7 25,00 points Willow Products expects the following sales of its single produc. March 5,600 Apri 6,700 May 7,750 June 8,200 July 9,400 Willow Products desires an ending finished goods inventory to be equal to 10% of the next month's sales needs. Actual March 1 Inventory is projected to be 560 units. Prepare a production budget for Willow Products for as many months as is possible. March April May June Sales nding Inv

Explanation / Answer

Willow Products Production Budget March April May Jun Expected Unit Sales              5,600               6,700               7,750            8,200 Add : Desired Ending inventory                  670                  775                   820                940 Total Needed              6,270               7,475               8,570            9,140 Less : Begning inventory                  560                  670                   775                820 Unit to be Produced              5,710               6,805               7,795            8,320

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