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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Production budget

Weightless Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

  Bath Scale Gym Scale
East Region unit sales 55,000 30,000
West Region unit sales 95,000 60,000
Total 150,000 90,000

The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 18,000 and 10,000 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 12,500 and 8,000 units, respectively.

  Prepare a production budget for the Bath and Gym scales for the month ended October 31.

To determine

Production Budget shows the quantities of units that a company must produce to meet the budgeted sales and inventory.

To Prepare: The production budget for the bath and gym scales for the month ended October 31.

Explanation

The following table shows theproduction budget for the bath and gym scales.

Company W
Production Budget
For The Month Ending October 31
Particulars Units
Bath Scale Gym Scale
Expected units to be sold 150,0...

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