Question

Paige Company estimates that unit sales will be 11,100 in quarter 1, 12,300 in quarter 2, 14,500 in quarter 3, and 18,700 in quarter 4. Management desires to have an ending finished goods inventory equal to 22% of the next quarter’s expected unit sales.

Prepare a production budget by quarters for the first 6 months of 2017.

PAIGE COMPANY Production Budget choose the accounting period                                                          For the Six Months Ending June 30, 2017For the Quarter Ending June 30, 2017June 30, 2017
	Quarter
	1		2		Six Months
select an opening production budget item                                                          Beginning Direct MaterialsTotal Materials RequiredBeginning Finished Goods InventoryTotal Required UnitsDirect Materials PurchasesRequired Production UnitsDesired Ending Direct MaterialsExpected Unit SalesDirect Materials Per UnitDesired Ending Finished Goods Inventory	Enter a number of units		Enter a number of units
select between addition and deduction                                                          AddLess: select a production budget item                                                           Beginning Finished Goods InventoryDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials PurchasesTotal Required UnitsTotal Materials RequiredBeginning Direct MaterialsRequired Production UnitsExpected Unit SalesDirect Materials Per Unit	Enter a number of units		Enter a number of units
select a summarizing line for the first part                                                          Total Materials RequiredDirect Materials PurchasesBeginning Finished Goods InventoryDesired Ending Finished Goods InventoryDesired Ending Direct MaterialsExpected Unit SalesBeginning Direct MaterialsTotal Required UnitsRequired Production UnitsDirect Materials Per Unit	enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction                                                          AddLess: select a production budget item                                                           Beginning Finished Goods InventoryDirect Materials Per UnitTotal Materials RequiredTotal Required UnitsRequired Production UnitsDesired Ending Finished Goods InventoryDesired Ending Direct MaterialsDirect Materials PurchasesBeginning Direct MaterialsExpected Unit Sales	Enter a number of units		Enter a number of units
select a closing production budget item                                                          Total Required UnitsDesired Ending Finished Goods InventoryBeginning Finished Goods InventoryRequired Production UnitsExpected Unit SalesTotal Materials RequiredDesired Ending Direct MaterialsDirect Materials Per UnitBeginning Direct MaterialsDirect Materials Purchases	enter the total number of units		enter the total number of units		enter the total number of units

Answer 1

PAIGE COMPANY Production Budget For the Six Months Ending June 30, 2017 Quarter 1 | 2 Six Months Expected Unit Sales 11100 12300 Add: Desire Ending Finished goods inventory 2706 3190 Total Required units 13806 15490 Less: Beginning Finished goods inventory 2442 2706 Required production 11364 12784 24148