After completing their sales forecast, Fido Treats LLC has decided that it would like to create a production budget. The company's goal is to ensure that it will be able to produce enough dog treats to cover the sales that have been projected for the entire 1st quarter. Fido has projected the following sales: January 1,109 units, February 1242 units, March 1391 units, April 1405 units. The company has a policy of keeping 15% of the next month's projected sales on hand in their Finished Goods (FG) Inventory. Calculate the number of budgeted units that need to be produced for each and for the entire quarter.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 5EA: Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700...
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After completing their sales forecast, Fido Treats LLC has decided that it would like to create a production budget. The company's goal is to ensure that it will be able to produce enough dog treats to cover the sales that have been projected for the entire 1st quarter. Fido has projected the following sales: January 1,109 units, February 1242 units, March 1391 units, April 1405 units. The company has a policy of keeping 15% of the next month's projected sales on hand in their Finished Goods (FG) Inventory. Calculate the number of budgeted units that need to be produced for each and for the entire quarter. 

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