Carson, Inc. produces office supplies, including pencils. Pencils are bundled in packages; each package sells for...

 

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Carson, Inc. produces office supplies, including pencils. Pencils are bundled in packages; each package sells for P20. The sales budget for the first four month of the year follows for this product. Unit Sales January 100, 000 February 120, 000 March 110, 000 April 100, 000 Company policy requires that ending inventories for each month be 10 percent of next month's sales. However, due to greater sales in December than anticipated, the ending inventory of pencils for that month is only 5, 000 packages. 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. Carson, Inc. produces office supplies, including pencils. Pencils are bundled in packages; each package sells for P20. The sales budget for the first four month of the year follows for this product. Unit Sales January 100, 000 February 120, 000 March 110, 000 April 100, 000 Company policy requires that ending inventories for each month be 10 percent of next month's sales. However, due to greater sales in December than anticipated, the ending inventory of pencils for that month is only 5, 000 packages. 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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