Sheridan manufactures competition stunt kites. In November, Steven Garcia prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 45,000 32,000 35,000 112,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 52,000 38,000 37,400 114,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 48,000 31,000 31,400 110,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Quarter
Sheridan manufactures competition stunt kites. In November, Steven Garcia prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 45,000 32,000 35,000 112,000 Desired ending inventory 7,000 6,000 2,400 2,400 Kites needed 52,000 38,000 37,400 114,400 Less beginning inventory 4,000 7,000 6,000 4,000 Budgeted production 48,000 31,000 31,400 110,400 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 15% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January February March Quarter
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 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...
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