Sherwood, Inc. makes pet crates. In the first four months of the coming year, Sherwood expects the

Question:

Sherwood, Inc. makes pet crates. In the first four months of the coming year, Sherwood expects the following unit sales:

January .....30,000

February ...29,000

March .......31,000

April ......34,000

Sherwood’s policy is to have 15 percent of next month’s sales in ending inventory. On

January 1, it is expected that there will be 4,200 crates on hand.

Required:

Prepare a production budget for the first quarter of the year. Show the number of crates that should be produced each month as well as for the quarter in total.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...