Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,64O finished surfboards in inventory. July 4,100 August 6,400 September Budgeted sales units 4, 300 Prepare the production budget for the months of July and August. ATLANTIC SURE Production Budget July August Add: Desired ending inventory Total required units Units to be produced
Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,64O finished surfboards in inventory. July 4,100 August 6,400 September Budgeted sales units 4, 300 Prepare the production budget for the months of July and August. ATLANTIC SURE Production Budget July August Add: Desired ending inventory Total required units Units to be produced
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 2E: The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units....
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy
is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,64O.
finished surfboards in inventory.
September
August
6,400
July
Budgeted sales units
4,100
4, 300
Prepare the production budget for the months of July and August.
ATLANTIC SURE
Production Budget
July
August
Add: Desired ending inventory
Total required units
Units to be produced
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