Monday, August 19, 2013

Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows

Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:



Sales in Units July 30,000 August 45,000 September 60,000 October 50,000


The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next month’s sales. The inventory at the end of June was 3,000 units.



Required:
Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total. (Do not round intermediate calculations. Input all amounts as positive values.)




Click here for the SOLUTION

No comments:

Post a Comment