Calculate a production budget in good form for first quarter

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Desert Seafood, Inc., cans and sells shrimp. The sales budget for the first 4 months of its fiscal year is as follows:

               Unit Sales                  Sales Revenue

January   200,000                       $150,000

February  240,000                      180,000

March      220,000                    165,000

April        200,000                     150,000

  • Company policy requires that the ending inventory for each month be equal to 30% of the budgeted unit sales for the following month. At the beginning of January, the inventory report shows 36,000 cans of shrimp.

Question 1: Calculate a production budget in good form for the first quarter of the year (January-March), reporting monthly production as well as the quarter as a whole.

Reference no: EM132507604

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