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PRODUCTION BUDGET ...

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Accounting

PRODUCTION BUDGET
Q3-Y0 Q4-Y0 Q1-Y1 Q2-Y1 Q3-Y1 Q4-Y1 Total for Y1 Q1-Y2 Q2-Y2
Budgeted Sales in Units 16,000 18,000 24,000 16,000 32,000 36,000 108,000 26,000 22,000
Desired EI of FG 2,160 2,880 1,920 3,840 4,320 12,960 3,120 2,640
Total Needs 18,160 20,880 25,920 19,840 36,320 48,960 111,120 28,640
BI of FG
Required Production

The required number of finished goods to produce each quarter is based on sales, desired ending finished goods inventory, and beginning finished goods inventory levels. Table 3 provides related details. Table 3 PRODUCTION Desired Ending FG Inventory (Based on next quarter's sales) 12% FG Inventory Q3 Y0 15,000

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