Exercise 8.15 Production Budget Palmgren Company produces consumer products. The
ID: 2490481 • Letter: E
Question
Exercise 8.15
Production Budget
Palmgren Company produces consumer products. The sales budget for four months of the year is presented below.
Company policy requires that ending inventories for each month be 25 percent of next month’s sales. At the beginning of July, the beginning inventory of consumer products met that policy.
Required:
Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
Palmgren Company
Production Budget
For the Third Quarter
July
August
September
Total
Unit sales
Correct 9
Correct 10
Correct 11
Correct 12
Desired ending inventory
Less: Beginning inventory
Unit sales
Units produced
Correct 13
Correct 14
Correct 15
Correct 16
Correct 17
Total needed
Correct 19
Correct 20
Correct 21
Correct 22
Desired ending inventory
Less: Beginning inventory
Unit sales
Units produced
Correct 23
Correct 24
Correct 25
Correct 26
Correct 27
Units produced
Correct 29
Correct 30
Correct 31
Correct 32
HidePrepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
Palmgren Company
Production Budget
For the Third Quarter
July
August
September
Total
Unit sales
Correct 9
Correct 10
Correct 11
Correct 12
Desired ending inventory
Less: Beginning inventory
Unit sales
Units produced
Correct 13
Correct 14
Correct 15
Correct 16
Correct 17
Total needed
Correct 19
Correct 20
Correct 21
Correct 22
Desired ending inventory
Less: Beginning inventory
Unit sales
Units produced
Correct 23
Correct 24
Correct 25
Correct 26
Correct 27
Units produced
Correct 29
Correct 30
Correct 31
Correct 32
Explanation / Answer
Palmgren Company Production Budget For the Third Quarter. Particulars July Aug Sept Total Unit Sales 32500 33700 38000 104200 less: Beginning inventory 8125 8425 9500 26050 Total needed 24375 25275 28500 78150 add: Ending Inventory 8425 9500 9000 26925 Units Produced 32800 34775 37500 105075
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.