Purchase Solution

Production Budgeting - Nebo Company

Not what you're looking for?

Ask Custom Question

Nebo Company makes and sells two products: leather and vinyl briefcases. The sales forecasts for these briefcases for the next four quarters are as follows:
Leather Vinyl
Briefcases Briefcases
First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 90
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 180
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270 228
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 144
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798 642
On January 1, Nebo has a stock of 80 completed leather briefcases and 60 vinyl briefcases. Experience
indicates that Nebo must maintain an inventory equal to one-half of the next quarter's
sales.
Required:
1. How many leather and vinyl briefcases must be produced during each of the first three
quarters to meet sales and inventory demands?
2. Interpretive Question: Assume Nebo is a wholesale merchandising company instead of a
manufacturing company. How would the budget information provided in part (1) change?

Purchase this Solution
Solution Summary

Excel file contains production budget for Nebo company.

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Sensitivity Analysis and Scenario Analysis Evaluation

    What involvement would nonfinancial people such as those in marketing, accounting, and production have in the analysis? ANSWERS Usually a company with hundreds of potential projects every year has a capital budgeting system in place.

  • Budgeting and Profit Statements

    5087 Budgeting, Overhead Rates and Decision Making A company has the following for both June and July Per Unit : Sales Price 50 Direct Cost Material 18 Direct Wages 4

  • Accounting: Relevance Of Budgeting

    The operations can literally be in such a state of distress in a short period of time due to improper budgeting, that the company has to drain all available credit lines or stop production.

  • Expansion vs. raising price of product and the risk

    Capital budgeting decision is surrounded by risk factors. Risk in capital budgeting may be defined as the variation of actual cash flows from the expected cash flows.

  • Tools For a Captital Budget Analysis

    Our Company - Capital Budgeting ? Our R&D department is constantly searching for new products or for ways to improve existing products. ?

  • Managerial accounting - budgeting

    395283 Managerial accounting - budgeting Budgets are pervasive across all types of organizations.Outline the budgeting process in a company or by using your imagination,explain the logical flow represented in the master budget, beginning with the organization

  • Evaluating Performance and Product Life-Cycle Theory

    New production provides new jobs and uses for resources, something that does not occur when a company takes over an established company. 3.How would you incorporate political risk into the capital budgeting process of foreign investment projects?

  • How to judge manangers

    What specific considerations arise when budgeting in multinational companies? What are the best ways to address these considerations? When budgeting in a multination company, there are specific considerations that must be made.

  • Capital budgeting techniques: Guillermo Furniture

    435241 Capital budgeting techniques: Guillermo Furniture Capital budgeting is the process of determining what a company should invest in assets. Select a capital budgeting technique and a publicly traded company.

View More Related Solutions