Curiosity Corner sells books and various other reading-related products. One of the stores most popular reading-related products
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October ......... 6,500
November ........ 7,200
December ........ 9,600
Total .......... 23,300
Each pillow requires ½ yard of fabric that costs, on average, $6 per yard.
Required
A. Prepare a sales budget for the fourth quarter based on the above information.
B. Prepare a production budget for the pillow manufacturing company. The company did not have any inventory of pillows at the end of September, but the company does want to maintain a 10 percent inventory at the end of each month based on the next month’s estimated sales. January’s sales are expected to be low, given the post-holiday trends, and are estimated to be 4,800 units.
C. Prepare a fabric purchases budget. The company did not have any inventory of fabric at the end of September, but the company does want to maintain a fabric inventory equal to 20 percent of the next month’s material needs. January’s projected production is expected to be 4,820 units.
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Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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