Vivo Firm manufactures one (1) product. Its sales price is expected to be P200 per unit. Actual sales for November 201A are 1,550 units and 1,700 units for December 201A. ABC budgets its sales for the next six (6) months for 201B: January - 3,375; February - 3,250; March - 3,440; April - 3,125.

All sales are on account. The company collects its accounts as follows: 70% in the month of the sale, 20% in the month following the sale, and 10% in the second month following the sale. Uncollectible accounts are negligible and can be disregarded. The beginning inventory on January 1, 201B is 340 units. Vivo desires an ending inventory of 10% of the next month's budgeted sales.

Determine the production budget for the first quarter of 201B.

Answer rating: 100% (QA)

To determine the production budget for the first quarter of 201B we need to calculate the desired en... View the full answer