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managerial Accounting Exercise 4. The following information relates to Marter Manufacturing Corporation for next year:   ...

managerial Accounting

Exercise 4. The following information relates to Marter Manufacturing Corporation for next year:

  

Quarter 1  

Quarter 2  

Quarter 3   

Quarter 4  

Expected sales (in units)

220,000

230,000

160,000

180,000

Desired ending finished goods inventory (in units)  

29,800

32,300

38,000

35,000


Beginning balance of Quarter 1 inventory is 37,100 units.

Required: Prepare the production budget by quarter and in total for the year.

Business   Accounting   
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Ans.

Quarter 1   Quarter 2   Quarter 3    Quarter 4   Whole Year
Expected sales (in units) 220,000 230,000 160,000 180,000 790,000
Add :Desired ending finished goods inventory (in units)   29,800 32,300 38,000 35,000 35,000
Total needs 249,800 262,300 198,000 215,000 825,000
Less : Beginning Inventory ( in units) 37,100 29,800 32,300 38,000 38,000
Required Production 212,700 232,500 165,700 177,000 787,000
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