Management desires an ending finished goods inventory in

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Reference no: EM13581882

1.Use the following data for MSP Company to prepare a production budget for the fourth quarter of 2012.

 


October

November

December

Quarter

Budgeted unit sales

2,000

2,200

2,400

6,600

Sale price per unit

$20

$20

$20

$20

Total sales revenue

$40,000

$44,000

$48,000

$132,000

 

Management desires an ending finished goods inventory in each month equal to 20% of the next month%u2019s budgeted sales.The desired ending inventory for December is 520 units.The company expects to start the quarter with 360 units in finished goods inventory.

 


October

November

December

Quarter

Budgeted unit sales





Add desired ending inventory





Total units needed





Less beginning inventory





Required production




 

Reference no: EM13581882

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