Goody Company estimates that unit sales will be 10,500 in quarter 1; 12,100 in q
ID: 2386639 • Letter: G
Question
Goody Company estimates that unit sales will be 10,500 in quarter 1; 12,100 in quarter 2; 14,200 in quarter 3; and 18,700 in quarter 4. Management desires to have an ending finished goods inventory equal to 22% of the next quarter's expected unit sales. Complete the production budget by quarters for the first 6 months of 2010.
GOODY COMPANY
Production Budget
For the Six Months Ending June 30, 2010
Quarter Quarter
Six
1
2
Months
Expected unit sales
_______
Add: Desired ending finished goods
_______
Total required units
_______
Less: Beginning finished goods inventory
_______
Required production units
GOODY COMPANY
Production Budget
For the Six Months Ending June 30, 2010
Quarter Quarter
Six
1
2
Months
Expected unit sales
_______ ______________
Add: Desired ending finished goods
_______ ______________
Total required units
_______ ______________
Less: Beginning finished goods inventory
_______ ______________
Required production units
_______ _______ _______Explanation / Answer
GOODY COMPANY
Production budget
For the six months ending June 30,2010
Particulars
Quarter 1
Quarter 2
6 months
GOODY COMPANY
Production budget
For the six months ending June 30,2010
Particulars
Quarter 1
Quarter 2
6 months
Expected unit sales 10,500 12,100 22,600 Add: Desired ending finished goods 2,662 3,124 (22% of next quarter's expected sales) Total required units 13,162 15,224 Less: Beginning finished goods inventory 5,000 2,662 Required production untis 8,162 12,562 20,724Related Questions
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