Prepare a sales budget and a production budget for kessler

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Reference no: EM131894977

Problem

Kessler Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $ 30. Kessler projects sales for April will be 1,500 packages, with sales increasing by 250 packages per month for May, June, and July. On April 1, Kessler has 300 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Kessler for April, May, June.

Sales Budget for A, M, J	April	May	June	Total
Budgeted packages to be sold	1500	1750	2000	5250
Sales Price per package	$30	$30	$30	$30
Total Sales	$45,000	$52,500	$60,000	$157,500

Production Budget for A, M, J	April	May	June	Total
Budgeted packages to be sold	1500	1750	2000	5250
PLUS: Desired packages in Ending Inventory
Total Packages needed
LESS: Packages in Beginning Inventory	300			300
Budgeted packages to be produced		1800	2050

Reference no: EM131894977

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