Please prepare a production budget with the following master budget information:
Quarter 1 60,000
Quarter 2 70,000
Quarter 3 80,000
Quarter 4 65,000
Quarter 1 15,000 units
Quarter 2 20,000 units
Quarter 3 10,000 units
Quarter 4 5,000 units
Assets:
Cash $300,000,000
Direct Materials Inventory $5,000,000
Accounts Receivable $0
Plant & Equip, net $20,000,000
Total Assets $325,000,000
Liabilities & Stockholders’ Equity:
Accounting Payable $0
Capital Stock $175,000,000
Retained Earnings $150,000,000
Total Liab & Stckhldrs’ Equity $325,000,000
Solution:
Production Budget | |||||
Particulars | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
Projected Sales units | 60000 | 70000 | 80000 | 65000 | 275000 |
Add: Desired ending inventory | 15000 | 20000 | 10000 | 5000 | 5000 |
Less: Opening Inventory | 0 | 15000 | 20000 | 10000 | 0 |
Budgeted Production units | 75000 | 75000 | 70000 | 60000 | 280000 |
Please prepare a production budget with the following master budget information: Projected unit sales for each...
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