1) Crystal Company manufactures two models of microcassette recorders, VCH and M

Question

1)     Crystal Company manufactures two models of microcassette recorders, VCH and MTV. Based on the following production data for April of the current year, prepare a production budget for April.

VCH

MTV

Estimated inventory (units), April 1

2,800

4,200

Desired inventory (units), April 30

6,900

5,250

Expected sales volume (units):

Eastern zone      

12,500

12,960

Midwest zone    

19,000

19,800

Western zone    

14,500

9,840

  

     

VCH

     

MTV

     

Estimated inventory (units), April 1

     

2,800

     

4,200

     

Desired inventory (units), April 30

     

6,900

     

5,250

     

Expected sales volume (units):

     

     

     

Eastern zone      

     

12,500

     

12,960

     

Midwest zone    

     

19,000

     

19,800

     

Western zone    

     

14,500

     

9,840

   Crystal Company manufactures two models of microcassette recorders, VCH and MTV. Based on the following production data for April of the current year, prepare a production budget for April.

Explanation / Answer

Hi,

Please find the answer as follows:

Thanks.

Production Budget for April

VCH MTV Total Estimated Sales 34750 42600 77350 Add Desired Ending Inventory 6900 5250 12150 Less Opening Inventory 2800 4200 7000 Estimated Production 38850 43650 82500

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