Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick...
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Accounting
Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales:
January
41,000
February
38,000
March
50,000
April
51,000
Patrick's policy is to have 20% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,700 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. If required, round your answers to the nearest whole unit.
Patrick Inc.
Production Budget
For the Coming Quarter
January
February
March
1st Quarter Total
Sales
Desired ending inventory
Total needs
Less: Beginning inventory
Units to be produced
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