Ask Question
26 March, 22:38

Preparing a Production Budget Tulum Inc. makes a Mexican chocolate mix. In the first 4 months of the coming year, Tulum expects the following unit sales: January 22,000 February 20,000 March 30,000 April 31,000 Tulum's policy is to have 20% of next month's sales in ending inventory. On January 1, it is expected that there will be 1,300 boxes of the chocolate mixture on hand. Required: Prepare a production budget for the first quarter of the year. Show the boxes that should be produced each month as well as for the quarter in total.

+2
Answers (1)
  1. 27 March, 02:04
    0
    The preparation of the production budget for the first quarter of the year is presented below:

    Tulum Inc.

    Production Budget

    For the Coming Quarter

    January February March 1st Quarter Total

    Sales 22,000 20,000 30,000 72,000

    Desired

    ending inventory 4,000 6,000 6,200 6,200

    (20,000 * 20%) (30,000 * 20%) (31,000 * 20%)

    Total needs 26,000 26,000 36,200 78,200

    Less:

    Beginning inventory 1,300 4,000 6,000 1,300

    Units to

    be produced 24,700 22,000 30,200 76,900
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Preparing a Production Budget Tulum Inc. makes a Mexican chocolate mix. In the first 4 months of the coming year, Tulum expects the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers