Question

74. A company is preparing the production budget for quarter 2. Projected sales (in units) are as follows:
April 600 units
May 680 units
June 750 units
The company policy is to have finished goods stocks of 20% of the next month's projected sales. Assuming that there was no opening stock for April, what should be the production quota for May?
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Answer 1

Answer:

30percent at April

Explanation:

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Answer 2

Answer:

Budgeted sales unit x budgeted sales price = Budgeted Sales Revenue. For a Merchandising company, the next budget is Purchases budget. It uses the Sales Budget and the merchandise inventory account. Budgeted Sales units + Desired Ending Mdse Inventory – Beg.