Answer:
Production Budget April 3970 May 5530 June 5740 units
Explanation:
Tyler Co.
Production Budget
For the months of April, May, and June.
Particulars April, May, June July
Sales 3100 4900 7000 2800(given)
+ Desired Ending Inv. 1470 2100 840
<u>Less Beginning Inv. 600 1470 2100 </u>
<u>Production Budget 3970 5530 5740 </u>
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The Production budget is calculated by adding sales to the desired ending inventory and subtracting the beginning inventory from it. Each month's ending inventory is next month's beginning inventory.
The Ending Inventory is calculated by taking 30% of the next months' sales.
Ending Inventory for April = 4900*30%=1470
Ending Inventory for May = 7000*30%=2100
Ending Inventory for April = 2800*30%=840
