Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales 32,500 S 975,000 July August September October 33,700 1,061,550 38,000 36,000 1,197,000 1,141,200 Company policy requires that ending inventories for each month be 25 percent of next month's sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales 32,500 S 975,000 July August September October 33,700 1,061,550 38,000 36,000 1,197,000 1,141,200 Company policy requires that ending inventories for each month be 25 percent of next month's sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in 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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