ACCT 325-Aqua-pro Inc. produces submersible water
by | Mar 18, 2020 | Uncategorized
Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows:
Unit Sales
April261,000
May319,000
June290,000
July348,000
Company policy requires that ending inventories for each month be 25% of next month’s sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000.
Required:
Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
Aqua-pro Inc.Production Budget For the Second Quarter
TotalSales
Desired ending inventory
Total needs
Less: Beginning inventory
Units produced
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