8-2B - Production Budget Joanne Company shows the following estimates for unit sales for...
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Accounting
8-2B - Production Budget
Joanne Company shows the following estimates for unit sales for the third quarter of its upcoming fiscal year:
July
August
September
Quarter
Units sold
5,000
4,000
3,500
12,500
The company requires finished goods inventory on hand equal to 30% of the next months expected sales.
The company expects to begin July with 1,500 units in inventory. The expected unit sales for October are 3,800.
Required:
Prepare a production budget for the quarter.
What is the desired ending inventory for the quarter and from what month does it come from? What are the total production needs for the month of August? What is the beginning inventory for the quarter and from what month is it based on? Which quarter is this Production Budget for
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