VitaPup produces a vitamin-enhanced dog food that is sold in Kansas. The company
ID: 2463902 • Letter: V
Question
VitaPup produces a vitamin-enhanced dog food that is sold in Kansas. The company expects sales to be 12,200 bags in January, 15,000 bags in February, 14,500 bags in March, and 17,100 bags in April. There are 1,330 bags on hand at the start of January. VitaPup desires to maintain monthly ending inventory equal to 15 percent of next month’s expected sales.
Prepare the production budget for VitaPup for the months of January, February, and March.
VitaPup
Production Budget
For the months of January, February, and March
January
February
March
Quarter
VitaPup
Production Budget
For the months of January, February, and March
January
February
March
Quarter
Total needed/Beginning inventory of finished units/Desired ending inventory of finished units/Units to be produced/Unit sales
LessAdd: Unit sales/Desired ending inventory of finished units/Units to be produced/Beginning inventory of finished units/Total needed
Total needed/Desired ending inventory of finished units/Beginning inventory of finished units/Unit sales/Units to be produced
LessAdd: Beginning inventory of finished units/Units to be produced/Unit sales/Total needed/Desired ending inventory of finished units
Units to be produced/Unit sales/Beginning inventory of finished units/Desired ending inventory of finished units/Total needed
Explanation / Answer
Production budget
Jan feb march quarter Expected sales 12200 15000 14500 41700 Add desired ending inventory(15%*expected sales next month) 2250 2175 2565 6990 Less beginning inventory 1330 2250 2175 5755 Units to be produced 13120 14925 14890 42935Related Questions
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