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Lugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $30. Lugo projects sales for April will be 2,000 packages, with sales increasing by 250 packages per month for May, June, and July. On April 1, Lugo has 325 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June. Begin by preparing a sales budget for April, May, and June. Lugo Company Sales Budget April, May, and June April May June Total Budgeted packages to be sold 2,000 2,250 2,500 6,750 Sales price per package 30 %2$ 30 30 $ 30 %24 60,000 $ 67,500 %24 75,000 202,500 Total sales

Lugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $30. Lugo projects sales for April will be 2,000 packages, with sales increasing by 250 packages per month for May, June, and July. On April 1, Lugo has 325 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June. Begin by preparing a sales budget for April, May, and June. Lugo Company Sales Budget April, May, and June April May June Total Budgeted packages to be sold 2,000 2,250 2,500 6,750 Sales price per package 30 %2$ 30 30 $ 30 %24 60,000 $ 67,500 %24 75,000 202,500 Total sales

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...
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Lugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $30. Lugo projects sales for April will be 2,000 packages, with sales increasing by 250 packages per month for May, June, and July. On April 1, Lugo has 325 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June. Begin by preparing a sales budget for April, May, and June. Lugo Company Sales Budget April, May, and June April May June Total Budgeted packages to be sold 2,000 2,250 2,500 6,750 $ 30 30 $ 30 $ 30 Sales price per package $ 60,000 $ 67,500 $ 75,000 202,500 Total sales
Transcribed Image Text:Lugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $30. Lugo projects sales for April will be 2,000 packages, with sales increasing by 250 packages per month for May, June, and July. On April 1, Lugo has 325 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June. Begin by preparing a sales budget for April, May, and June. Lugo Company Sales Budget April, May, and June April May June Total Budgeted packages to be sold 2,000 2,250 2,500 6,750 $ 30 30 $ 30 $ 30 Sales price per package $ 60,000 $ 67,500 $ 75,000 202,500 Total sales
Now prepare a production budget for April, May, and June. Lugo Company Production Budget April, May, and June April May June Total Plus: Total packages needed Less: Budgeted packages to be produced
Transcribed Image Text:Now prepare a production budget for April, May, and June. Lugo Company Production Budget April, May, and June April May June Total Plus: Total packages needed Less: Budgeted packages to be produced
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