Question

Production Budget

FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:

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FlashKick requires ending inventory of product to equal 20 percent of the next month’s unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls.

Required:

Hide Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. Production budget for practice balls: FlashKick Company Production Budget - Practice Balls For the First Quarter of Next Year January February March Unit sales Total needed Units produced

Hide Production budget for match balls: FlashKick Company Production Budget - Match Balls For the First Quarter of Next Year January February March Unit sales Total needed Units produced

Answer 1

Flash kick company

Production Budget - Practice balls.

for the first quarter of next year.

	january	february	march
units sales	50,000	58,000	80,000
add:required ending inventory (20%*58,000..80,000...100,000)	11,600	16,000	20,000
total needed	61,600	74,000	100,000
less: opening inventory (previous closing inventory)	(3,100)	(11,600)	(16,000)
units produced	58,500	62,400	84,000

Flash kick company

production budget - match balls.

for the first quarter of next year

	january	february	march
unit sales	7,000	7,500	13,000
add; ending inventory (20%*7500...13,000....18,000)	1,500	2,600	3,600
total needed	8.500	10,100	16,600
less: opening inventory (previous closing inventory)	(400)	(1500)	(2600)
units produced	8,100	8,600	14,000