A. Required: Given the following information, prepare a quartley sales budget an

Question

A. Required: Given the following information, prepare a quartley sales budget and production budget, in units.

Last year sales = 500,000 units. The organization is planning a 10 percent increase in sales for the year 2012. The company is a retail organization that sees higher sales due to the holidays in the 4th quarter. 40 percent of the sales occur in the 4th quarter and the remaining units are sold equally over the other three quarters.

The beginning inventory for the year amounts to 20,000 units. The estimated sales for the first quarter of 2013 amount to 115,000 units. The company requires an ending inventory of 20 percent of the next quarters sale.

Explanation / Answer

Particulars Quarter1 Quarter 2 Quarter 3 Quarter 4 Opening Inventory 20000 22000 22000 44000 Sales 110000 110000 110000 220000 Closing Inventory 22000 22000 44000 23000 Units Produced 112000 110000 132000 199000

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