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Noel Enterprises has budgeted sales in units for the next five months as follows:
January 6,800 units
February 5,400 units
March 7,200 units
April 4,600 units
May 3,800 units
The company needs to make a production budget for the first quarter of the year.
Jan Feb Mar Qtr. total
Month
Sales
EI
BI
Production
Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on December 31 contained 400 units.
Question a. What should the opening inventory in units be for April?
Question b. What is the total number of units to be produced in February?
Question c. What is the desired ending inventory for April? For the quarter ending March 31?
Question d. Provide the following for the first calendar quarter?
Total sales
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