chrystal telcom has budget the sale of its moble phone over the next 4 months july 3 495539
EXERCISE 2 Production Budget
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chrystal telcom has budget the sale of its moble phone over the next 4 months july 3 495539
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Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:
The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next month”s sales. The inventory at the end of June was 3,000 units.
|
Sales in Units |
|
|
July |
30,000 |
|
August |
45,000 |
|
September |
60,000 |
|
October |
50,000 |
Required:
Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.
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