Review your results from Short Exercise S22- 3. Yoder has 200 luggage sets on hand on January 1 and desires to have an ending inventory equal to 10% of the next month’s sales. March sales are expected to be 1,800 luggage sets. Use this information and the sales budget prepared in Short Exercise S22- 3 to prepare Yoder’s production budget for January and February.

Data from Exercise S22-3

Yoder Company manufactures luggage sets. Yoder sells its luggage sets to department stores. Yoder expects to sell 1,500 luggage sets for $ 175 each in January, and 1,750 luggage sets for $ 175 each in February.