OB).4 Production budget True Tab Inc. produces a small and large version of its

Question

OB).4 Production budget True Tab Inc. produces a small and large version of its popular electronic anticipated unit sales for the scales by sales region are as follows: EX 22-5 le Small Scale 38,000 43,000 81,000 Large Scale 67,000 79,000 146,000 80,700 North Region unit sales South Region unit sales Total The finished goods inventory estimated for July 1, 2017, for the small and large scale models is 1,800 and 2,200 units, respectively. The desired finished goods inventory for July 31, 2017, for the small and large scale models is 1,500 and 2,500 units, respectively Prepare a production budget for the small and large scales for the month ended July 31, 2017.

Explanation / Answer

Production budget :

Small scale Large scale Unit sales 81000 146000 Add: Desired ending inventory 1500 2500 Total needs 82500 148500 Less: Beginning inventory (1800) (2200) Unit to be produce 80700 146300

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