The production manager of Dame Enterprises plans to have an inventory on hand at the end of each month that will equal 150% of the next month's sales. This requirement was met at the end of February. A sales budget for the four months ending June 30th is as follows:MonthUnitsMarch30,000April50,000May80,000June40,000Required:Prepare a production budget for April and May.
What will be an ideal response?
| April | May | ||||||
| Sales (units) | 50,000 | 80,000 | |||||
| Plus desired ending inventory | 120,000 | 60,000 | |||||
| Total needs | 170,000 | 140,000 | |||||
| Less estimated beginning inventory | (75,000) | (120,000) | |||||
| Production | 95,000 | 20,000 | |||||
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