Management desires an ending finished goods inventory in

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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Management desires an ending finished goods inventory in

Reference no: EM13581882

Reference no: EM13581882

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