Problem:
1. Bledso Supply Corporation manufactures and sells cotton gauze. Expected sales of gauze (in boxes) for upcoming months are as follows:
|
June
|
36,000
|
|
July
|
40,000
|
|
August
|
50,000
|
|
September
|
38,000
|
|
October
|
30,000
|
|
November
|
24,000
|
|
December
|
35,000
|
Management likes to maintain a finished goods inventory equal to 25% of the next month's estimated sales.
Required:
Prepare the company's production budget for the third quarter of this year (the months of July, August and September) in good form. Include a column for each month and a total column for the entire quarter.