Yogi Company expects to sell 1,900 units of finished product in January and 2,25

Question

Yogi Company expects to sell 1,900 units of finished product in January and 2,250 units in February. The company has 170 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 2,400 units. Prepare Yogi'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 Yogi Company Production Budget Two Months Ended January 31 and February, 28 January February Plus Total units needed Less: Budgeted units to be produced

Explanation / Answer

January February Budgeted units to be sold 1900 2250 Plus: Desired units in ending inventory 450 480 Total units needed 2350 2730 Less: Units in beginning inventory 170 450 Budgeted units to be produced 2180 2280

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