Mallory Company expects to sell 130 units in the first quarter, and 70 units in the second quarter. Assuming the company prefers to maintain finished goods inventory equal to 40% of the next quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected sales were used to determine last quarter's required ending inventory. Mallory Company Production Budget First Quarter Budgeted Sales in units Add: desired ending finished goods inventory Total finished goods inventory needed Deduct: beginning finished goods inventory Units to be produced 1st Qtr.
Mallory Company expects to sell 130 units in the first quarter, and 70 units in the second quarter. Assuming the company prefers to maintain finished goods inventory equal to 40% of the next quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected sales were used to determine last quarter's required ending inventory. Mallory Company Production Budget First Quarter Budgeted Sales in units Add: desired ending finished goods inventory Total finished goods inventory needed Deduct: beginning finished goods inventory Units to be produced 1st Qtr.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...
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![Mallory Company expects to sell 130 units in the first quarter, and 70 units in the second quarter.
Assuming the company prefers to maintain finished goods inventory equal to 40% of the next
quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected
sales were used to determine last quarter's required ending inventory.
Mallory Company
Production Budget
First Quarter
Budgeted Sales in units
Add: desired ending finished goods inventory
Total finished goods inventory needed
Deduct: beginning finished goods inventory
Units to be produced
1st Qtr.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce63173e-bcf8-430e-958b-faf378849c6e%2Fc8144a87-d62d-48a6-97d7-6f38bdba9a3c%2Fxavwer_processed.png&w=3840&q=75)
Transcribed Image Text:Mallory Company expects to sell 130 units in the first quarter, and 70 units in the second quarter.
Assuming the company prefers to maintain finished goods inventory equal to 40% of the next
quarter's sales, prepare a production budget for the first quarter only. Hint: This quarter's projected
sales were used to determine last quarter's required ending inventory.
Mallory Company
Production Budget
First Quarter
Budgeted Sales in units
Add: desired ending finished goods inventory
Total finished goods inventory needed
Deduct: beginning finished goods inventory
Units to be produced
1st Qtr.
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