Question

Maltz Company estimates that unit sales will be 9,600 in quarter 1; 12,000 in quarter 2; 13,800 in quarter 3; and 17,400 in quarter 4. Management wants to have ar ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2020. MALTZ COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter 1 Total 2 Expected Unit Sales A T 9600 T 12000 21600 ales T Desired Ending Finished Goods 2520 2898 5418 12120 14898 27018 Total Required Units Pressan. Begining Finished Goods Inventory + Beginning Finished Goods Inventory | 2016 2520 4536 T Required Productions in Units 10104 12378 22482

Answer 1

	quarter 1	quarter 2	total
expected unit sales	9600	12000	21600
add: desired ending finished goods	2520	2898	2898
total required units	12,120	14,898	24,498
less: beginning finished goods inventory	2016	2520	2016
required production in units	10,104	12,378	22,482

desired ending inventory for the period will be ending inventory of last quarter...(but not sum of all quarters)

beginning finished goods inventory for the period will be beginning finished goods inventory of first quarter.(but not sum of all quarters)