Uecker Enterprise expects sales of 2 0,000 units.of DPI 1000 in September. DPI 1
ID: 2798473 • Letter: U
Question
Uecker Enterprise expects sales of 2 0,000 units.of DPI 1000 in September. DPI 1000 is its most popular desktop model. The sales manager is confident that, between October anch December, the total sales will have a 50% growt,rt each mo unit or DPI 1000 requires 40 sets of Alpha-5 chip. The firm's policy is to maintain one percent of the following month's sales vol applies also to the chips and components required to assemble the finished product. nth from the month before. Each wing month's sales volume in the current month's ending inventory. The same policy Required: What are the budgeted productions of DPI 1000 units for September, October, and November? 1.Explanation / Answer
1.
Production Budget of DPI 1000
September
October
November
December
Budgeted Sales
20,000
30,000
45,000
67,500
Less: Beginning Inventory
200
300
450
Add: Ending Inventory
300
450
675
Budgeted Production
20,100
30,150
45,225
2.
Purchase Budget of Alpha-5 Chips
September
October
November
Budgeted Production of DPI 1000
20,100
30,150
45,225
No of Units required per unit
40
40
40
Total Requirement
804,000
1,206,000
1,809,000
Less: Beginning Inventory
8,040
12,060
Add: Ending Inventory
12,060
18,090
Budgeted Purchase of Alpha-5 Chips
804,000
1,206,000
Production Budget of DPI 1000
September
October
November
December
Budgeted Sales
20,000
30,000
45,000
67,500
Less: Beginning Inventory
200
300
450
Add: Ending Inventory
300
450
675
Budgeted Production
20,100
30,150
45,225
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