1 days left l Beai ment CALCLATOR PRINTER VERSION BACK Exercise 173 Benet Company has budgeted the following unit sales 2017

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 quarters anticipated sales. Prepare a production budget for 2016 BENET COMPANY Production Budget For the Year Ended December 31, 2016 Quarter Total 8:32
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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
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