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Problem - Nafari Company's sales budget has the following unit sales projection for each quarter of the calendar year 2011.
January -March 1,080,000
April-June 1,360,000
July-September 980,000
October-December 1,100,000
Total 4,520,000
Sales for the first quarter of 2012 are expected to be 1,200,000 units. Ending Inventory of finished goods for each quarter is scheduled to equal 10 percent of next quarter's budgeted sales. The company's ending inventory on December 31, 2010, is estimated at 94,500 units. Develop a quarterly production budget for 2011 and for the year in total.
Required -
Prepare the beginning inventory for the first quarter.
Prepare the budgeted beginning inventory for the second - fourth quarters.
Prepare the budgeted production for each quarter.
Prepare the budgeted production for the year.
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