Looking for more tutorials?

Tutorial 24367

Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in Units August 37,000 Sept...

Waseem
Earnings: $ 3202.35
Tutorials: 7039
$15 Per/hour
Reviews: 21


Question:

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

                                                Sales in Units

   August                              37,000  

                September                        56,000  

  October                            46,000  

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 1,500 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. 

ATTACHMENTS
solution_2.xlsx