Chapter 22 Basic Homework

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Production Budget

FitHealth Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

	Bath Scale		Gym Scale
East Region unit sales	19,900		41,100
West Region unit sales	21,500		22,600
Total	41,400		63,700

The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 1,700 and 2,700 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,200 and 2,900 units, respectively.

Prepare a production budget for the Bath and Gym scales for the month ended October 31.

FitHealth Inc. Production Budget For the Month Ending October 31

	Units Bath Scale	Units Gym Scale
Expected units to be sold	fill in the blank 1	fill in the blank 2
Less desired inventory, October 31Less estimated inventory, October 1Plus desired inventory, October 31Plus estimated inventory, October 1Plus desired inventory, October 31	Plus desired inventory, October 31	Plus desired inventory, October 31
Total units required	fill in the blank 6	fill in the blank 7
Less desired inventory, October 31Less estimated inventory, October 1Plus desired inventory, October 31Plus estimated inventory, October 1Less estimated inventory, October 1	Less estimated inventory, October 1	Less estimated inventory, October 1
Total units to be produced	fill in the blank 11	fill in the blank 12

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Remember to take into account expected units to be sold, desired units in ending inventory and estimated units in beginning inventory when calculating total units to be produced.

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