Question -
Palermo Company estimates that unit sales will be 10,000 in quarter 1; 12,000 units in quarter 2; 15,000 units in quarter 3; and 18,000 in quarter 4. Using sales price of $70 per unit, prepare the sales budget by quarters for the year ending December 31, 2014.
Sales budget data for Palermo Company are given in above question. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2014.