Question

Production Budget

FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:

	Practice Balls				Match Balls
	Units		Selling Price		Units		Selling Price
January	50,000		$8.75		7,000		$16.00
February	56,000		$8.75		8,000		$16.00
March	80,000		$8.75		14,000		$16.00
April	100,000		$8.75		19,000		$16.00

FlashKick requires ending inventory of product to equal 20 percent of the next month’s unit sales. Beginning inventory in January was 3,300 practice soccer balls and 400 match soccer balls.

Required:

Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year.

Production budget for practice balls:

FlashKick Company
Production Budget - Practice Balls
For the First Quarter of Next Year
	January	February	March
Unit sales
Desired ending inventory
Total needed
Less: Beginning inventory
Units produced

Production budget for match balls:

FlashKick Company
Production Budget - Match Balls
For the First Quarter of Next Year
	January	February	March
Unit sales
Desired ending inventory
Total needed
Less: Beginning inventory
Units produced

Answer 1