Business, 28.11.2019 23:31 brandyrushing3

Question:
paige company estimates that unit sales will be 10,800 in quarter 1, 12,800 in quarter 2, 14,400 in quarter 3, and 18,300 in quarter 4. management desires to have an ending finished goods inventory equal to 24% of the next quarter's expected unit sales.

prepare a production budget by quarters for the first 6 months of 2017.

production budget:
production budget for a firm gives information about the quarter-wise budgeted number of units to be produced for the upcoming year. the number of units to be produced in a given quarter is usually governed by the expected quarterly sales in units and desirable ending inventory which serves as a cushion to unforeseen uncertainties.

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