Mac Glow Cosmetics International Company manufactures and distributes lipsticks all over the world. To keep production and
Question:
Mac Glow Cosmetics International Company manufactures and distributes lipsticks all over the world. To keep production and sales moving smoothly, the company has the following inventory requirements:
a. The finished goods inventory on hand at the end of each month must be equal to 2,000 units plus 25% of the next month’s sales. The finished goods inventory on July 31 is budgeted to be 5,000 units.
b. The company maintains no work in process inventories.
A sales budget for the last six months of the year follows.
Budgeted Unit Sales | |
July........... | 10,000 |
August...... | 15,000 |
September | 22,000 |
October.... | 20,000 |
November | 18,200 |
December | 15,800 |
Required:
Prepare a production budget for the month of October.
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam