Question

This Question: 10 pts 6 of 7 (1 complete) This Test: 200 pts possible 0 Rucker Company manufactures drinking glasses. Onc unit is a package of eight glasses, which sells for $18. Rucker projects sales for April will be 2,000 packages, with sales increasing by 50 packages per month for May, Junc, and July. On April 1, Rucker has 325 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Rucker for April, May, and June. Begin by preparing a sales budget for April, May, and June. Rucker Company Sales Budget April, May, and June April May Budgeted packages to be sold Sales price per package Jung Total Total sales Now prepare a production budget for April, May, and June Rucker Company Production Budget April, May, and June April May June Total Plus: Total packages needed Less: Budgeted packages to be produced Choose from any list or enter any number in the input fields and then continue to the next question ?

Answer 1

Rucker Company
Sales Budget
April, May, and June
	April	May	June	Total
Budgeted packages to be sold	2,000	2,050	2,100	6,150
Sales price per package	$               18	$               18	$               18	$                   18
Total sales	$ 36,000	$ 36,900	$ 37,800	$110,700

Rucker Company
Production Budget
April, May, and June
	April	May	June	Total
Budgeted packages to be sold	2,000	2,050	2,100	6,150
Plus: Desired ending inventory	410	420	430	430
Total packages needed	2,410	2,470	2,530	6,580
Less: Beginning inventory	325	410	420	325
Budgeted packages to be produced	2,085	2,060	2,110	6,255

Working notes:

April ending inventory = 2,050 × 20% = 410 units

May ending inventory = 2,100 ×20% = 420 units

June ending inventory = (2,100 + 50) × 20%

=2,150 ×20%

=430 units