Question

Production Budget Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Bath Scale Gym Scale Northern Region unit sales 40,000 25,000 Southern Region unit sales 75,000 35,000 Total 115,000 60,000 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. Healthy Measures Inc. Production Budget For the Month Ending March 31 Units Bath Scale Units Gym Scale Total units available Total units to be produced

Answer 1

Answer:

Total units to be produced Bath Scale  Units   118,200                  

Total units to be produced Gym Scale  Units   59,400

Explanation:

Given

Sales

                                             Bath Scale      Gym Scale

Northern Region                    40,000             25,000

Southern Region                    75,000             35,000

Total                                     115,000             60,000

Finished goods inventory March 1,

Bath scale models 11,800

Gym scale models 8,100

Desired finished goods inventory March 31

Bath scale models 15,000

Gym scale models  7,500 units,

We add ending inventory to sales and subtract beginninginventory to get Production units.

Healthy Measures Inc.

Production Budget

For the Month Ending March 31

                                     Units Bath Scale         Units Gym  Scale

Sales                                  115,000                          60,000

+ Ending Inventory              15,000                           7,500

-Opening Inventory               11,800                          8,100

Total units to be produced   118,200                      59,400