Solution-Prepare production budget taking into ending

Prepare production budget taking into ending inventory

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Reference no: EM132786402

Question -

a. Villi Manufacturing Corporation's most recent sales budget indicates the following expected sales (in units):

Expected unit sales.....

July 230,000

August 275,000

September 310,000

Villi wants to maintain a finished goods inventory of 20% of the next month's expected sales. Prepare production budget taking into consideration ending inventory in June 46,000 units and beginning inventory in October is 60,000 units?

b. XYZ Company is estimating the following sales:

July $45,000

August $50,000

September $65,000

October $80,000

November $75,000

December $60,000

Sales at XYZ are normally collected as follows: 10% in the month of sale; 60% in the month following the sale; and the remaining 30% in the second month following the sale. Make cash collection budget.

Reference no: EM132786402

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Prepare production budget taking into ending inventory

Reference no: EM132786402

Reference no: EM132786402

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