SECTION 2 (10 points) in March. The unit selling price is $95. Management next m

Question

SECTION 2 (10 points) in March. The unit selling price is $95. Management next month's expected unit sales. There are 17,000 units in the ending finished goods inventory for December of 2017 Instructions: In the space belos onthis page prepare (in good form) a "Production Budget" for the months of January anufacturing Company estimates that 2018 unit sales will be 68,000 in January, 54,000 in February, and 72000 desires to have ending finished goods inventory equal to 2596 of the and February of 2018. Be sure to include the heading and descriptions.

Explanation / Answer

Loyal Manufacturing Company Production Budget For the month of January and February January February Budgeted Unit sales                                68,000                                54,000 Add: Budgeted Ending Inventory (Units) 54,000*25% = 13,500 72,000*25% = 18,000 Required units of available production                                81,500                                72,000 Less: Budgeted Beginning inventory (Units)                                17,000 54,000*25% = 13,500 Units to be produced                                64,500                                58,500

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