Katherine Company's sales budget has the following unit sales projection for each quarter of the calendar year 2009.
Sales for the first quarter of 2010 are expected to be 600,000 units. Ending inventory of finished goods for each quarter is scheduled to equal 5 percent of the next quarter's budgeted sales. The company is expected to be in compliance with this policy as of December 31, 2008. Develop a quarterly production budget for 2009 and for the year in total.
- Prepare the beginning inventory for the first quarter
- Prepare the budgeted beginning inventory for the second - fourth quarters
- Prepare the budgeted production for each quarter
- Prepare the budgeted production for the year
Please see the attachment for the production budget pertaining to this solution.
Prepare the beginning inventory for the first quarter:
The beginning inventory for the first quarter would be the ending inventory of 4th ...
This solution describes how to prepare a production budget for the different time frames given in this scenario. In an attached Word document the production budget is formatted.