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Question - Ruby Mills is a textile manufacturing company in Northern Tasmania. Every year the company prepares a complete set of budgets. The budgeting process begins with information supplied by the Sales and Marketing department.
The balance in inventory at the beginning of the year was 500 000 square metres of fabric. The company plans to have inventory at the end of the month equal to 50% of the following month's sales. The marketing department has predicted unit sales (in square yards of fabric) to be as follows:
January 1,480,000 m2
February 2,120,000 m2
March 1,300,000 m2
April 2,400,000 m2
Required - Prepare Production budget for Ruby Mills for the first three months of the year. (Show totals for the quarter).
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