Question

Brief Exercise 9-3 Your answer is partially correct. Try again. Paige Company estimates that unit sales will be 10,900 in quarter 1, 13,100 in quarter 2, 14,600 in quarter 3, and 18,300 in quarter 4. Management desires to have an ending finished goods inventory equal to 24% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2020. PAIGE COMPANY Production Budget For the Six Months Ending June 30, 2020 A Quarter Six Months 2 13,100 | Expected Unit Sales Expected Unit Sales 10,900 T Desired Ending Finished Goods Inventory 3,144 3,144 4 Total Required Units Total Required Units 1 14,044 T 1,044 16,244 Beginning Finished Goods Inventory 3,144 Required Production Units Required Production Units 11,428 11,428 13,100 13,100 24,528 24,528

Answer 1

Calculating Production Budget

Calculating Budgeted Purchase Particulars 1st Quarter|1st Quarter Six months Expected unit saes 10900 131001 24000 Add : Closing Finished goods 3144) 3504 3504 Required units 14044 16604 27504 Less : Opening Finished goods 2616 3144 2616 Required - 1 Production units required 11428 13460 24888