ent Attempt in Progress

Steven is learning the ropes in his new position, looking over the production department's budgets from the past two years. He notices that his production department requires information from the sales division; in turn, the production budget is sent on to other departments. He now sees how the budget pieces fit together and how the production area contributes to the bigger picture. After seeing these connections, he gathers the following information.

		January		February		March		April
Budgeted sales volume (units)		3,300		2,800		4,200		3,700

Additional information:

		Budgeted selling price is $29 per unit.
		Desired monthly ending inventory is 15% of the next month's sales.
		Beginning finished goods inventory on January 1 is 435 units.

Steven recognizes the production department currently holds slightly less inventory than planned, but for good reasonDecember sales exceeded its goals!

(a)

Prepare the sales forecast for the first quarter of the upcoming year.

		January		February		March		Quarter
select an opening sales budget item Budgeted Sales RevenueBudgeted Sales VolumeBudgeted Selling Price		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select a sales budget item Budgeted Sales RevenueBudgeted Sales VolumeBudgeted Selling Price		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select a closing sale s budget item Budgeted Sales RevenueBudgeted Sales VolumeBudgeted Selling Price		$enter a total amount for the sales budget		$enter a total amount for the sales budget		$enter a total amount for the sales budget		$enter a total amount for the sales budget

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(b)

Prepare the production budget for the first quarter of the upcoming year.

		January		February		March		Quarter
select an opening production budget item Beginning FG InventoryBudgeted Sales VolumeBudgeted Units to be ProducedTarget Ending FG InventoryTotal Units Needed		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select between addition and deduction AddLess: select a production budget item Beginning FG InventoryBudgeted Sales VolumeBudgeted Units to be ProducedTarget Ending FG InventoryTotal Units Needed		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select a summarizing line for the first part Beginning FG InventoryBudgeted Sales VolumeBudgeted Units to be ProducedTarget Ending FG InventoryTotal Units Needed		enter a total number of units for the first part		enter a total number of units for the first part		enter a total number of units for the first part		enter a total number of units for the first part
select between addition and deduction AddLess: select a production budget item Beginning FG InventoryBudgeted Sales VolumeBudgeted Units to be ProducedTarget Ending FG InventoryTotal Units Needed		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select a closing production budget item Beginning FG InventoryBudgeted Sales VolumeBudgeted Units to be ProducedTarget Ending FG InventoryTotal Units Needed		enter a total number of units for the production budget		enter a total number of units for the production budget		enter a total number of units for the production budget		enter a total number of units for the production budget

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