Answered Essay: The Tough Jeans Company produces two different styles of jeans, Working Life and Social Life. T

The Tough Jeans Company produces two different styles of jeans, Working Life and Social Life. The company sales budget estimates that 400,000 of the Working Life jeans and 250,000 of the Social Life jeans will be sold during the year. The company begins with 9,000 pairs of Working Life and 18,000 pairs of Social Life. The company desires ending inventory of 7,500 of Working Life and 10,000 Social Life. Prepare a production budget for the year.

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Expert Answer

 

Tough Jeans Company

Production budget

Working Life Social Life
Expected units to be sold 400,000 250,000
Add: Desired ending inventory 7,500 10,000
Total 407,500 260,000
Less: Estimated beginning inventory 9,000 18,000
Total units to be produced 398,500 242,000
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