FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first four months of the coming year, Patrick expects the following unit sales:
Patrick’s policy is to have 25 percent of next month’s sales in ending inventory. On January 1, it is expected that there will be 6,700 drums of solvent on hand.
Required:
Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total.
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