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Production Budget

Emerson Company makes surfboards. Each surfboard requires 9 pounds of fiberglass to produce. The sales forecast for March is 1,700 surfboards. Estimated beginning and desired ending inventories for March are the following:

Estimated Beginning Inventory Desired Ending Inventory
Surfboards 300 420
Fiberglass (pounds) 4,400 6,000

a) Calculate the number of surfboards to be produced in March.
b) Calculate the number of pounds of fiberglass to be purchased in March.

Solution Preview

a) Calculate the number of surfboards to be produced in March.

Number of surfboards to be produced = Number to be sold + ending ...

Solution Summary

The solution explains how to prepare a production budget

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