Marlow Company produces hand tools. A production budget for the next four months is as follows:...

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Marlow Company produces hand tools. A production budget for the next four months is as follows: March 10,100 units, April 13,

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Answer 1

Answer #1

Solution:

Budgeted ending inventory for April = Budgeted sales for may * 20% = 16000*20% = 3200 units

Budgeted production for April = 13760

Budgeted sales for april + Desired ending inventory - Beginning inventory = 13760

Budgeted sales for april + 3200 - (Budgeted sales for april *20%) = 13760

Budgeted sales for april = 10560 / 0.80 = 13200 units

Budgeted ending inventory for march = Budgeted sales for april * 20% = 13200*20% = 2640

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Answer 2

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