FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high...
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Accounting
FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:
Practice Balls
Match Balls
Units
Selling Price
Units
Selling Price
January
50,000
$8.75
7,000
$16.00
February
56,000
$8.75
8,000
$16.00
March
70,000
$8.75
13,000
$16.00
April
100,000
$8.75
19,000
$16.00
FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,300 practice soccer balls and 400 match soccer balls.
Required:
Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year.
Production budget for practice balls:
FlashKick Company
Production Budget - Practice Balls
For the First Quarter of Next Year
January
February
March
Unit sales
__________
__________
__________
Desired ending inventory
__________
__________
__________
Total needed
__________
__________
__________
Less: Beginning inventory
__________
__________
__________
Units produced
__________
__________
__________
Production budget for match balls:
FlashKick Company
Production Budget - Match Balls
For the First Quarter of Next Year
January
February
March
Unit sales
__________
__________
__________
__________
__________
__________
Total needed
__________
__________
__________
__________
__________
__________
Units produced
__________
__________
__________
Answer & Explanation
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