Jimison Inc. produces spiral-bound notebooks. The unit sales for the first four months of the year for
Question:
Jimison Inc. produces spiral-bound notebooks. The unit sales for the first four months of the year for this product is as follows:
Unit Sales
January ....150,000
February ..200,000
March ...220,000
April .....200,000
Company policy requires that ending inventories for each month be 15 percent of next month’s sales. However, at the beginning of January, due to greater sales in December than anticipated, the beginning inventory of notebooks is only 12,000.
Required:
Prepare a production budget for the first quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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