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Tems11 [23]
3 years ago
11

One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April

, and 600 in May. The required ending inventory is 20% of the next month’s sales. Prepare a production budget for the first four months of the year. What is the total required production for the year?
Business
1 answer:
Reil [10]3 years ago
7 0

Answer and Explanation:

The preparation of the production budget  and The total required production for the year is as follows

<u>                                                   One Device </u>

<u>                                                   Production budget</u>

<u>                                               For the first four months</u>

<u>Particulars        Jan             Feb             Mar            April              Year</u>

Expected

unit sales          500 units    800 units   450 units  550 units    

Add:

Ending

inventory          160 units     90 units      110 units   120 units

     ($800 × 20%)     ($450 × 20%)    ($550 × 20%)     ($600 × 20%)

Total

required units  660 units    890 units     560 units  670 units

Less:

Beginning

inventory         100 units      160 units     90 units       110 units

       ($500 × 20%)  ($800 × 20%)  ($450 × 20%)    ($550 × 20%)  

Required

production

units                 560 units     730 units     470 units     560 units     2,320 units

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