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 30% of the next month’s sales needs. Actual March 1 inventory is projected to be 1,680 units.

Units March 5,600 April 6,600 May 7,650 June 8,250 July 9,300 Willow Products expects the following sales of its single product: Units March 5,600 6,600 7,650 June 8,250 July 9,300 April May Willow Products desires an ending finished goods inventory to be equal to 30% of the next month's sales needs. Actual March 1 inventory is projected to be 1,680 units Required Prepare a production budget for Willow Products for as many months as is possible March April May June July Sales Ending Inv Beginning Inv Production

Explanation / Answer

PARTICULARS MARCH APRIL MAY JUNE JULY Sales 5600 6600 7650 8250 9300 Ending Inv 1680 1980 2295 2475 2790 Beginning inv 1680 1680 1980 2295 2475 Production(Sales+ending Inv-Beginning Inv) 5600 6900 7965 8430 9615

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