Answer:
Instructions are below.
Explanation:
Giving the following information:
Budgeted sales:
July= 21,500
August= 24,300
September= 28,700
October= 28,900
Grantham maintains an ending inventory equal to 10% of the current month’s sales. The ending inventory at June 30th was 3,100.
Production budget= sales for the month + desired inventory - beginning inventory
July:
Sales= 21,500
Ending inventory= (24,300*0.10)= 2,430
Beginning inventory= (3,100)
Total= 20,830
August:
Sales= 24,300
Ending inventory= (28,700*0.10)= 2,870
Beginning inventory= (2,430)
Total= 24,740
September:
Sales= 28,700
Ending inventory= (28,900*0.10)= 2,890
Beginning inventory= (2,870)
Total= 28,720
