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Diamond Company manufactures two models of cassette recorders, VCH and MTV. Based on the following production...

Diamond Company manufactures two models of cassette recorders, VCH and MTV. Based on the following production data for April, prepare a production budget.

VCH MTV
Estimated inventory (units), April 1 2,900 4,000
Desired inventory (units), April 30 6,900 5,250
Expected sales volume (units):
Eastern zone 12,500 12,960
Midwest zone 19,000 19,800
Western zone 14,500 9,840
Diamond Company
Production Budget
For Month Ending April 30
VCH MTV
Sales
Total
Total production
business   accounting   
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Answer #1

Production budget :

VCH MTV
Sales 46000 42600
Add; Desired ending inventory 6900 5250
Total 52900 47850
Less: Beginning inventory -2900 -4000
Production units 50000 43850
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