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The following estimates and information have been gathered as part of the budget preparation of the hobby craft Co. The sales for the second and third quarter of the coming year have been estimated as follow:
Second Quarter Third Quarter
Massachusetts 10,000 35000 kits
Vermont 8,000 25,000
New Hampshire 5,000 20,000
23000 kits 80000 kits
It is decided that finished kits inventories are to be 25000, at the end of the second quarter and 5000 at the end of the third quarter. The inventory at the beginning of the second quarter will consist of 8,000 finished kits.
Requirment:
Question 1: Prepare Production Budget for second quarter and third quarter.
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