Gary notices that his production department requires information from the sales division: in turn, the production budget is sent on to other departments. He sees how the budget pieces fit together and how the production area contributes to the bigger picture; after seeing these connections, he gathers the following information:

January February March April

Budgeted sales volume $($units$)2500230036003600$

Budgeted selling price is $$26$ per unit

Desired Monthly ending inventory is $15\%$ of the next months sales.

Beginning FG Inventory on Jan $1$ is $315$ unit.

a$)$: Prepare the sales forecast for the first quarter of the upcoming year.

b$)$: Prepare the production budget for the first quarter of the upcoming year.

Answer rating: 100% (QA)

a To prepare the sales forecast for the first quarter of the upcoming year we need to calculate the projected sales volume for each month based on the ... View the full answer