Blue Wave Company budgets the following unit sales for the next four months: September, 3,000 units; October, 4.900 units: November, 6,900 units; and December, 8,400 units. The company's policy is to maintain finished goods Inventory equal to 60% of the next month's unit sales. At the end of August, the company had 1,800 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. BLUE WAVE COMPANY Production Budget September 3,000 Budgeted sales unds Add Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Loss Beginning inventory units Units to produce 4,900 60 % October 4,000 6,000 60% November 6,900 2,760 60 %

Blue Wave Company budgets the following unit sales for the next four months: September, 3,000 units; October, 4.900 units: November, 6,900 units; and December, 8,400 units. The company's policy is to maintain finished goods Inventory equal to 60% of the next month's unit sales. At the end of August, the company had 1,800 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. BLUE WAVE COMPANY Production Budget September 3,000 Budgeted sales unds Add Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Loss Beginning inventory units Units to produce 4,900 60 % October 4,000 6,000 60% November 6,900 2,760 60 %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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