Yada Company expects to sell 1,950 units of finished product in January and 2,10

Question

Yada Company expects to sell 1,950 units of finished product in January and 2,100 units in February. The company has 280 units on hand on January 1 and desires to have an ending inventory equal to 20% of the next month's sales. March sales are expected to be 2.150 units. Prepare Yada's production budget for January and February Select the labels, enter the amounts and prepare the production budget for January. Then, prepare the production budget for February. Yada Company Production Budget Two Months Ended January 31 and February, 28 January Budgeted units to be scld Plus: Desired units in ending inventory Total units needed Less: Units in beginning inventory Budgeted units to be produced

Explanation / Answer

Particulars January February Budgeted units to be sold 1950 2100 Add: Ending Inventory (20% of next month sale) 420 430 Total Units Needed 2370 2530 Less: Beginning Inventory 280 420 Budgeted units to be produced 2090 2110

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