Mac Glow Cosmetics International Company manufactures and distributes lipsticks all over the world. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 2,000 units plus 25% of the next month’s sales. The finished goods inventory on July 31 is budgeted to be 5,000 units. b. The company maintains no work in process inventories. A sales budget for the last six months of the year follows. Budgeted Unit Sales July 14,000 August 15,600 September 22,000 October 18,000 November 16,200 December 14,800 Required: Prepare a production budget for the month of September.
Mac Glow Cosmetics International Company manufactures and distributes lipsticks all over the world. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 2,000 units plus 25% of the next month’s sales. The finished goods inventory on July 31 is budgeted to be 5,000 units. b. The company maintains no work in process inventories. A sales budget for the last six months of the year follows. Budgeted Unit Sales July 14,000 August 15,600 September 22,000 October 18,000 November 16,200 December 14,800 Required: Prepare a production budget for the month of September.
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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Mac Glow Cosmetics International Company manufactures and distributes lipsticks all over the world. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 2,000 units plus 25% of the next month’s sales. The finished goods inventory on July 31 is budgeted to be 5,000 units. b. The company maintains no work in process inventories. A sales budget for the last six months of the year follows. Budgeted Unit Sales July 14,000 August 15,600 September 22,000 October 18,000 November 16,200 December 14,800 Required: Prepare a production budget for the month of September.
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