Question:
PRODUCTION BUDGET Caddo Company produces floor mats used in gyms and dojos. The sales budget for four months of the year is as follows:
|
|
Unit Sales
|
Dollar Sales
|
|
July
|
12,000
|
$ 240,000
|
|
August
|
50,000
|
1,000,000
|
|
September
|
30,000
|
600,000
|
|
October
|
28,000
|
560,000
|
Company policy requires that ending inventories for each month be 15 percent of next month's sales. At the beginning of July, the beginning inventory of mats met that policy.
Required:
Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.