Calculating Sales and Production Budgets
Rainwater Corp. expects to sell 600 umbrellas in May and 400 in June. Each umbrella sells for $15. Rainwater’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.
Required:
1.Prepare Rainwater’s sales budget for May and June.
2. Prepare Rainwater’s production budget for May and June.
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