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The finished goods inventory on hand on December 31, 2018 was 21,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 20% of the next quarter's
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The finished goods inventory on hand on December 31, 2018 was 21,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 20% of the next quarter's anticipated sales. Prepare a production budget for 2019.

User Goldierox
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Question Completion:

Benet Company has budgeted the following unit sales for 2019 and 2020:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1

Sales units 105,000 60,000 75,000 120,000 90,000

Answer:

Benet Company

Production Budget for 20198:

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales units 105,000 60,000 75,000 120,000

Ending inventory 12,000 15,000 24,000 18,000

Units available for

sale 117,000 75,000 99,000 138,000

Beginning inventory 21,000 12,000 15,000 24,000

Production 96,000 63,000 84,000 114,000

Step-by-step explanation:

a) Data and Calculations:

Budgeted unit sales for 2019 and 2020:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1

Sales units 105,000 60,000 75,000 120,000 90,000

Ending inventory 12,000 15,000 24,000 18,000

Units available for

sale 117,000 75,000 99,000 138,000

Beginning inventory 21,000 12,000 15,000 24,000 18,000

Production 96,000 63,000 84,000 114,000

User Andrei Pozolotin
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