Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. electro company manufactures an innovative automob

Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory...

Free

50.1K

Verified Solution

Question

Accounting

Electro Company manufactures an innovative automobiletransmission for electric cars. Management predicts that endingfinished goods inventory for the first quarter will be 275,400units. The following unit sales of the transmissions are expectedduring the rest of the year: second quarter, 459,000 units; thirdquarter, 493,000 units; and fourth quarter, 208,500 units. Companypolicy calls for the ending finished goods inventory of a quarterto equal 60% of the next quarter's budgeted sales.

Prepare a production budget for both the second and third quartersthat shows the number of transmissions to manufacture.

Answer & Explanation Solved by verified expert
4.3 Ratings (842 Votes)

  • Requirement

Production Budget

Second Quarter

Third Quarter

Budgeted Sales

                 459,000

                493,000

Add: Desired ending inventory

                 295,800 [493000 x 60%]

                125,100 [208500 x 60%]

Total needs

                 754,800

                618,100

Less: Beginning Inventory

                 275,400 [given]

                295,800 [ending for second quarter]

Units to be produced

                 479,400

                322,300

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Answer the following about metabolic syndrome in as much detail as you can recall (10 pts)     ...

Chemistry
1.2K views

An unknown compound has a molecular mass of 180.15 g/mole and an elemental analysis showing that...

Psychology
1.2K views

Explain, with examples, the character of such work motivation system, and the benefits it stands to...

Physics
1.2K views

Hi guys, ASAP please answer the question thank you so much!! A cyclist travelling at 8.0...

Electrical Engineering
1.2K views

A binary data stream 111010010 is to be transmitted using DPSK. Determine the encoded data and...

Physics
1.2K views

An object S is placed at a distance of 20 cm from a convex lens...

Calculus
1.2K views

8 If f f x dx 2 and g x dx 3 find a f...

Calculus
1.2K views

Please find the value of the requested unknown Hint You may wish to re arrange...

Algebra
1.2K views

Find the first five terms in sequences with the following nth terms.a. 2n +5b. 6n...

Algebra
1.2K views

O D D a Let E and O represent even numbers and odd numbers respectively...

Accounting
1.2K views

The budget director of Heathers Florist has prepared the following sales budget. The company had...

Accounting
1.2K views

A new proposed energy project that will cost initially $31757 and will save an annual...