JudaJuda Foods produces specialty soup sold in jars. The projected sales in doll
ID: 2509393 • Letter: J
Question
JudaJuda
Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows:
Total sales revenue
Number of jars sold
1st quarter. . . .
$182,000
154,500
2nd quarter. . .
$218,000
180,000
3rd quarter. . . .
$259,000
213,500
4th quarter. . . .
$195,000
165,000
JudaJuda
anticipates selling
223,000
jars with total sales revenue of
260,000
in the first quarter of the year following the year given in the preceding table.
JudaJuda
has a policy that the ending inventory of jars must be
20 %
of the following quarter's sales.
Requirement
Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in total.
Total sales revenue
Number of jars sold
1st quarter. . . .
$182,000
154,500
2nd quarter. . .
$218,000
180,000
3rd quarter. . . .
$259,000
213,500
4th quarter. . . .
$195,000
165,000
Explanation / Answer
JudaJuda Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Sales (units) 154500 180000 213500 165000 713000 Desired ending inventory of finished goods 36000 42700 33000 44600 44600 Total required 190500 222700 246500 209600 757600 Less beginnning inventory of finished goods 30900 36000 42700 33000 30900 Budgeted production (units) 159600 186700 203800 176600 726700
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