SmithSmith
Foods produces specialty soup sold in jars. The projected salesin dollars and jars for each quarter of the upcoming year are as?follows:
| Total sales revenue | Number of jars sold |
1st quarter. . . . | | $181,000 | 153,000 |
2nd quarter. . . . | | $213,000 | 180,000 |
3rd quarter. . . . | | $257,000 | 212,500 |
4th quarter. . . . | | $194,000 | 163,500 |
SmithSmith
anticipates selling
226 comma 000226,000
jars with total sales revenue of
$ 266 comma 000$266,000
in the first quarter of the year following the year given in thepreceding table.
SmithSmith
has a policy that the ending inventory of jars must be
3030?%
of the following? quarter's sales.
Requirement
Prepare a production budget for the year that shows the numberof jars to be produced each quarter and for the year in total.
Prepare the production budget by first calculating the totalunits? needed, then calculate the units to produce.
Smith Foods |
Production Budget |
For the Quarters in the Upcoming Year |
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
Unit sales | 153,000 | 180,000 | 212,500 | 163,500 | 709,000 |
Plus: Desired ending inventory | 54,000 | 63,750 | 49,050 | 67,800 | 67,800 |
Total needed | 207,000 | 243,750 | 261,550 | 231,300 | 776,800 |
Less: Beginning inventory | 45,900 | 54,000 | 63,750 | 69390 | 233040 |
Units to produce | 161,100 | 189,750 | 197,800 | | |
Enter any number in the edit fields and then click CheckAnswer.
