PSP auto Ltd manufactures auto components. Projected sales for coming next four months are as follows. April 30,000 May 40,000 June 50,000 July 50,000 Finished goods inventory on 1st April is 30,000 units each costing Rs 150/-.The desired ending inventory for each month is 75%of the next month’s sales. Prepare production budget for the quarter ending on 30th June.

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Chapter7: Budgeting
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PSP auto Ltd manufactures auto components. Projected sales for coming next four months are as follows.

April

30,000

May

40,000

June

50,000

July

50,000


Finished goods inventory on 1st April is 30,000 units each costing Rs 150/-.The desired ending inventory for each month is 75%of the next month’s sales. Prepare production budget for the quarter ending on 30th June.
 
 
 
 
 
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