Question

Production Budget Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for...

Production Budget

Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows:

Unit Sales
April 216,000
May 264,000
June 240,000
July 288,000

Company policy requires that ending inventories for each month be 25% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000.

Required:

Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

Aqua-pro Inc.
Production Budget
For the Second Quarter
April May June Total
Sales
Desired ending inventory
Total needs
Less: Beginning inventory
Units produced

Homework Answers

Answer #1
Aqua-pro-Inc.
Production Budget
For the Second Quarter
April May June Quarter
Budgeted Unit Sales 216000 264000 240000 720000
Add:Ending Inventory=(264000*25%) in April,(240000*25% in May),(288000*25%) in June 66000 60000 72000 72000
Total Needs 282000 324000 312000 792000
Less: Opening Inventory=21000 in April,Closing Stock of April is he beginning stock of may and closing stock of may is the beginning stock of June 21000 66000 60000 21000
Units Produced 261000 258000 252000 771000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4 months of the...
Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales: January 41,000 February 38,000 March 50,000 April 51,000 Patrick's policy is to have 21% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,350 drums of solvent on hand. Required: Prepare a production budget for the first quarter of the year. Show the number of drums that should...
Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4 months of the...
Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales: January 41,000 February 38,000 March 50,000 April 51,000 Patrick's policy is to have 21% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,400 drums of solvent on hand. Required: Prepare a production budget for the first quarter of the year. Show the number of drums that should...
Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4 months of the...
Preparing a Production Budget Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales: January 41,000 February 38,000 March 50,000 April 51,000 Patrick's policy is to have 24% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,600 drums of solvent on hand. Required: Prepare a production budget for the first quarter of the year. Show the number of drums that should...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget. Rumble Thunder Estimated inventory (units), June 1 254 75 Desired inventory (units), June 30 292 65 Expected sales volume (units): East Region 3,300 2,900 West Region 5,050 5,700 Unit sales price $100 $185 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget. Rumble Thunder Estimated inventory (units), June 1 292 85 Desired inventory (units), June 30 336 74 Expected sales volume (units): East Region 4,300 3,800 West Region 5,300 6,000 Unit sales price $105 $195 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget. Rumble Thunder Estimated inventory (units), June 1 291 93 Desired inventory (units), June 30 334 81 Expected sales volume (units): East Region 3,900 4,350 West Region 5,650 6,400 Unit sales price $115 $190 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 271 75 Desired inventory (units), June 30 312 65 Expected sales volume (units): Midwest Region 3,650 4,100 South Region 5,250 4,550 Unit sales price $140 $225 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 262 77 Desired inventory (units), June 30 301 67 Expected sales volume (units): Midwest Region 3,150 2,750 South Region 5,450 6,150 Unit sales price $145 $205 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 256 63 Desired inventory (units), June 30 294 55 Expected sales volume (units): Midwest Region 2,600 2,300 South Region 5,800 5,050 Unit sales price $115 $205 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on...
Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 282 78 Desired inventory (units), June 30 324 68 Expected sales volume (units): Midwest Region 3,850 4,300 South Region 5,400 4,700 Unit sales price $130 $190 a. Prepare a sales budget. Sonic Inc. Sales Budget For the Month Ending...