Question

Garver Industries has budgeted the following unit sales: 2020 January February March April May Units 10,000 8,000 9,000 11,000 15,000 The finished goods units on hand on December 31, 2019, was 2,000 units. E n it requires 3 pounds of raw materials that ar pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month! maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's p materials on hand at December 31, 2019 (a) For the first quarter of 2020, prepare a production budget. GARVER INDUSTRIES Production Budget For the Quarter Ended March 31, 2020 January February March Total Click If you would like to Show Work for this question Open Show Work MacBook

Answer 1

| Total GARVER INDUSTRIES Production Budget For the Quarter Ended March 31, 2020 January February Expected unit sales 10000 8000 Desired ending finished goods units 1600 1800 Total required units 11600 9800 Less: beginning finished goods units 2000 1600 Required production units 9600 8200 March 9000 2200 11200 1800 9400 27200 Ending Inventory, March = 20% * April Sales Ending Inventory, March = 20% * 11,000 Ending Inventory, March = 2,200