Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales 32,500 S 975,000 July August September October 33,700 1,061,550 38,000 36,000 1,197,000 1,141,200 Company policy requires that ending inventories for each month be 25 percent of next month's sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Palmgren Company produces consumer products. The sales budget for four months of the year
is presented below.
Unit Sales
Dollar Sales
32,500
S 975,000
July
August
September
October
33,700
1,061,550
38,000
36,000
1,197,000
1,141,200
Company policy requires that ending inventories for each month be 25 percent of next
month's sales. At the beginning of July, the beginning inventory of consumer products met that
policy.
Required:
Prepare a production budget for the third quarter of the year. Show the number of units that
should be produced each month as well as for the quarter in total.
Transcribed Image Text:Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales 32,500 S 975,000 July August September October 33,700 1,061,550 38,000 36,000 1,197,000 1,141,200 Company policy requires that ending inventories for each month be 25 percent of next month's sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
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