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1 days left l Beai ment CALCLATOR PRINTER VERSION BACK Exercise 173 Benet Company has budgeted the following unit sales 2017 2016 Quarter Units Quarter Units 1 90,000 1105,000 2 60,000 3 75,000 4 120,000 The fnished gods Inventary on hand on Decembaer 31, 2015 wes 2100unit is he companys polcy to maintain rished goods inventory at the end of wach quarter equal to 20% of the next quarter’s anticipated sales. Prepare a production budget for 2016 BENET COMPANY Production Budget For the Year Ended December 31, 2016 Quarter Total 8:32
Expert Answer
Answer:
| Banet company | |||||
| Production budget | |||||
| Quarter | |||||
| 1 | 2 | 3 | 4 | Year | |
| Expected unit sales (A) | 105000 | 60000 | 75000 | 120000 | |
| Add Desired ending finished goods Inventory (20% of the next month sale) (B) |
12000 | 15000 | 24000 | 18000 | |
| Total production Required C= (A+B) | 117000 | 75000 | 99000 | 138000 | |
| Less Beginning finished goods inventory( Closing of last month) (D) | 21000 | 12000 | 15000 | 24000 | |
| Required Production unit (C-D) | 96000 | 63000 | 84000 | 114000 | 357000 |
