Answer:
Q1= 9,510
Q2= 7,680
Q3= 3,140
Q4= 3,820
Explanation:
Giving the following information:
Expected quarterly unit sales for tents at Sandy’s Camping Gear are 7,500, 8,800, 3,200, and 2,900.
At the start of the current year, the inventory of finished tents on hand is 750 tents. The desired ending inventory of 20 percent of next quarter’s sales.
The production budget for each month has the following structure:
Production budget= sales + ending inventory - beginning inventory
Q1= 7,500 + (8,800*0.20) - 750= 9,510
Q2= 8,800 + (3,200*0.20) - 1,760= 7,680
Q3= 3,200 + (2,900*0.20) - 640= 3,140
Q4= 2,900 + (7,500*0.20) - 580= 3,820
