Heather Products expects the following sales of its single product: UnitsMay15,000June16,000July17,500August18,000September19,000Heather desires an ending finished goods inventory to be equal to 20% of the next month's sales needs. Actual May 1 inventory will be 3,300 units. Required:Prepare a production budget for Heather for as many months as is possible.
What will be an ideal response?
? | May | June | July | August | Sept |
Sales | 15,000 | 16,000 | 17,500 | 18,000 | 19,000 |
+ Ending Inv | + 3,200 | + 3,500 | + 3,600 | + 3,800 | (unknown) |
- Beginning Inv | - 3,300 | - 3,200 | - 3,500 | - 3,600 | -3,800 |
Production | 14,900 | 16,300 | 17,600 | 18,200 | (unknown) |
Budgeted production units = Budgeted unit sales + Budgeted ending finished goods inventory ? Budgeted beginning finished goods inventory
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