Production Budget
Accu-Weight, Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:
Small ScaleLarge ScaleNorth Region unit sales19,100 35,200 South Region unit sales20,600 21,600 Total39,700 56,800
The finished goods inventory estimated for May 1, 2015, for the small and large scale models is 1,700 and 2,700 units, respectively. The desired finished goods inventory for May 31, 2015, for the small and large scale models is 1,200 and 2,900 units, respectively.
Prepare a production budget for the small and large scales for the month ended May 31, 2015.
Accu-Weight, Inc.
Production Budget
For the Month Ending May 31, 2015
Units Small Scale
Units Large Scale
Expected units to be sold
Correct 7
Correct 8
- Plus estimated inventory, May 1, 2015
- Plus desired inventory, May 31, 2015
Correct 9
Correct 10
Correct 11
Total
Correct 13
Correct 14
- Less estimated inventory, May 1, 2015
- Less desired inventory, May 31, 2015
Correct 15
Correct 16
Correct 17
Total units to be produced
Correct 19
Correct 20
