Solvena Inc. sold their products as much as 15.000 units in 2011. Solvena Inc. wants to increase sales in 2012 amounting to 10% of sales in 2011. The opening stock of the products in 2012 was estimated at 1.200 units, while the number of closing stock at the end of 2012 was 500 units. Based on historical data of sales in previous years, Solvena Inc. decided to allocate the sales target for 2012 as follows: 20% was allocated in December, 15% was allocated in November, 10% was allocated in February, June and July, and 5% for the remaining months.

Required:

Based on the data, prepare the production budget for Solvena Inc. for each month during the year 2012 by using:

a.       Stable production method

b.       Stable inventory method

Answer rating: 100% (QA)

Answer As per given details please refer below answer First need to crease sales budget for 2012 Sal... View the full answer