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American Apparel produces two different types of jackets: “Casual” and “Stylin”. The sales budget estimates that...

American Apparel produces two different types of jackets: “Casual” and “Stylin”. The sales budget estimates that 350,000 of the Casual Jackets and 400,000 of the Stylin Jackets will be sold during 2020. The company begins with 12,500 Casual Jackets and 21,000 Stylin Jackets. The company desires ending inventory of 18,000 of Casual and 27,000 Stylin.

Determine the :

1. Production budget in 2020 for Casual units :  

2. Production budget in 2020 for Stylin units :

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Answer #1
1)
Production Budget in 2020 for
Caual Units
Casual Jackets
Budgeted Sales 350,000
Add: Desired Ending Inventory 18,000
Total required production 368,000
Less: Beginning inventory 12,500
Budgeted packages to be produced 355,500
2)
Production Budget in 2020 for
Stylin Units
Stylin
Budgeted Sales 400,000
Add: Desired Ending Inventory 27,000
Total required production 427,000
Less: Beginning inventory 21,000
Budgeted packages to be produced 406,000
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