Question

The sales forecast for birdhouses built by Ryan Enterprises follows. Beginning inventory for the year is expected to be 10,000 birdhouses, and the production manager prefers to maintain an ending inventory of 20% of the next quarter’s sales.
Quarter ...... Number of Birdhouses
First ........ 10,000
Second ....... 30,000
Third ........ 35,000
Fourth ....... 50,000

REQUIRED
Prepare a quarterly production budget. Assume that the sales forecast for the first quarter of the following year is the same as the first quarter forecast for this year.



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  • CreatedJanuary 26, 2015
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