Automobile Quarterly
Acct homework help!! Production budget?
Wayans Company produces and sells automobile batteries, the heavy-duty HD-240. The 2007 Sales budget is as follows.
Quarter HD-240
1 5,000
2 7,000
3 8,000
4 10,000
The January 1, 2007, inventory of HD-240 is 2,000 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2008 are expected to be 30% higher than sales in the same quarter in 2007.
Complete the quarterly production budgets for each quarter and in total for 2007.
Find the following for each quarter:
Expected unit sales
add: ending finished good units
total required units
less:Beginning finished goods units
Required production units
Can u guide me step by step..
You said that the sales in the FIRST quarter is expected to increase by 30%. What about other quarters?
If all quarters have 30% increase the add 30% to sales of 2007 quarters and proceed from there. I will do it for you for the first quarter.
Sales 5000 + 1500 = 6500
Ending inventory 2nd qtr. 7000+2100=9100×40%= 3640
Beginning inventory 5000 x 40% = 2000
Production 8140
John Austin Hanna ~ Fredericksburg, Texas Artist ~ Painting of the Texas Hill Country
Tags: art, automobile, automobile quarterly, automobile quarterly back issues, automobile quarterly books, automobile quarterly index online, automobile quarterly volume 1, economy, magazine, vintage
This entry was posted on Tuesday, October 31st, 2006 at 12:25 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.