Question

Production Budget Weightless Inc. produces a small and large version of its popular electronic scale. The...

Production Budget

Weightless Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:

Bath Scale Gym Scale
East Region unit sales 26,400 38,500
West Region unit sales 28,500 29,900
Total 54,900 68,400

The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 1,700 and 2,600 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,200 and 2,800 units, respectively.

Prepare a production budget for the Bath and Gym scales for the month ended October 31.

WEIGHTLESS INC.
Production Budget
For the Month Ending October 31
Units
Bath
Scale
Units
Gym
Scale
Expected units to be sold
Plus desired inventory, October 31
Total units required
Less estimated inventory, October 1
Total units to be produced
0 0
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Answer-

WEIGHTLESS INC.
Production Budget
FOR THE MONTH ENDING OCTOBER 31
Particulars Bath Scale Gym Scale
Units Units
Budgeted sales 54900 68400
Add:- Closing Inventory, October 31 1200 2800
Less:- Opening Inventory, October 1 1700 2600
No. of units to be produced 54400 68600
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