Question

O E9-20A (similar to) Question Help Anderson Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows: Anderson anticipates selling 221,000 jars with total sales revenue of $264,000 in the first quarter of the year following the year given in the preceding table. Anderson has a policy that the ending inventory of jars must be 30% of the following quarter's sales. Total sales revenue Number of jars sold 1st.quarter..... $183,000 $218,000 $251,000 $199,000 2nd quarter.... 3rd quarter .... 4th quarter. 152,500 182,500 211,500 164,000 Requirement Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in total. Prepare the production budget by first calculating the total units needed, then calculate the units to produce. Anderson Foods Production Budget For the Quarters in the Upcoming Year Quarter 1 Quarter 2 Quarter 3 152,500 182,500 211,500 54,750 63,450 49,200 Unit sales Quarter 4 164,000 66,300 230,300 Year 710,500 66,300 Plus: Desired ending inventory Total needed 207,250 245,950 260,700 776,800 Less: Beginning inventory Units to produce

Answer 1

Answer

	Q1	Q2	Q3	Q4	Year
Units sale	152500	182500	211500	164000	710500
Plus: Desired ending inventory	54750	63450	49200	66300	66300
Total needed	207250	245950	260700	230300	776800
Less: Beginning Inventory	45750	54750	63450	49200	45750
Units to produce	161500	191200	197250	181100	731050