Question

The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 11,800 and 8,100 units, respectively. The desired finished goods inventory for March 31 for the Bath and Gym scale models is 15,000 and 7,500 units, respectively. Prepare a production budget for the Bath and Gym scales for the month ended March 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answer 1

Answer:

Production Budget  Bath     118,200        

Production Budget   Gym    59400  

Explanation:

The production budget is calculated by adding the desired finished goods ending inventory to the sales and subtracting the opening inventory from it.

Production Budget

                                           Bath                Gym

Northern Sales                40,000             25000

Southern Sales                75,000              35000    (Missing Data)

Total Sales                      115,000              60,000

Add desired Ending

Inventory                           15000              7500

Less Opening Inventory   11800               8100

Production Budget            118,200          59400  

(The data in the given question was missing which has been added)

The Production Budget figures may change if the missing data is different from the one used.