pescado produce tuna in can. the sale budget for the first four months of the ye

Question

pescado produce tuna in can. the sale budget for the first four months of the year is presented Jan 200,000 Feb 240,000 Mar 220,000 Apr 200,000 inventory 35% of nest month
at begining of Jan, inventory of tuna is 38,000 cans

, Pescado produces tuna in cans. The sales budget for the first four months of the year is presented below nit Sales Dollar Sales January February March April /- 200,000 240,000 220,000 200,000 $150,000 180,000 C2 165,000 150,000 Company policy next month's sales. At the beginning of January, the inventory of tuna is 38,000 cans ding inventories for each month be 35 percent of Required Prepare a production budget for the first quarter of the year. Show the number of s that should be produced each month as well as for the(quarter in total.

Explanation / Answer

January February March Quarter Budgeted sales 200000 240000 220000 660000 Add: Desired ending inventory 84000 77000 70000 70000 Total units needed 284000 317000 290000 730000 Less: Beginning inventory 38000 84000 77000 38000 Budgeted production 246000 233000 213000 692000

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