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Production Budget
Producers' Inc. Wants to know the number of units that it has to produce for each quarter of the following year. At the end of the current year, it is expected that the company will have in stock 4,800 units of its finished products. The inventory will be maintained at this level up to the second quarter of the year. In the third and fourth quarters, however, the inventory level will be increased by one half.
Projected quarterly sales for the coming year are:
First Quarter - 42,000 units
Second Quarter - 51,000 units
Third Quarter - 64,000 units
Fourth Quarter - 68,000 units
Required:
Question 1: Prepare the production budget for the coming year, showing the details for each quarter.
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