alam Company makes a ‘gula melaka’ chocolate mix. In the first 4 months of coming year, Talam expects the following unit sales: Months Unit January 22,000 February 20,000 March 30,000 April 31,000 Talam’s policy is to have 20% of next month’s sales in ending inventory. On 1 January, it is expected that there will be 1,300 boxes of the chocolate mixture on hand. Required: Prepare a production budget for the first quarter of the year. Show the boxes that should be produced each month as well as for the quarter of total.
alam Company makes a ‘gula melaka’ chocolate mix. In the first 4 months of coming year, Talam expects the following unit sales: Months Unit January 22,000 February 20,000 March 30,000 April 31,000 Talam’s policy is to have 20% of next month’s sales in ending inventory. On 1 January, it is expected that there will be 1,300 boxes of the chocolate mixture on hand. Required: Prepare a production budget for the first quarter of the year. Show the boxes that should be produced each month as well as for the quarter of total.
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 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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alam Company makes a ‘gula melaka’ chocolate mix. In the first 4 months of coming year, Talam expects the following unit sales:
| Months | Unit |
| January | 22,000 |
| February | 20,000 |
| March | 30,000 |
| April | 31,000 |
Talam’s policy is to have 20% of next month’s sales in ending inventory. On 1 January, it is expected that there will be 1,300 boxes of the chocolate mixture on hand.
Required:
Prepare a production budget for the first quarter of the year. Show the boxes that should be produced each month as well as for the quarter of total.
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