Asked by Reegan Van Rooyen on Jun 13, 2024
Verified
Brinso Supply Corporation manufactures and sells cotton gauze. Expected sales of gauze (in boxes) for upcoming months are as follows:
Management likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales.Required:
Prepare the company's production budget for the third quarter of this year (the months of July, August and September). Include a column for each month and a total column for the entire quarter.
Production Budget
A plan detailing the quantity of each product a company aims to produce within a specific timeframe, factoring in projected sales and inventory requirements.
Finished Goods Inventory
Products that have completed the manufacturing process and are ready for sale.
- Calculate the quantities of production budgeted, taking into account the policy on inventory and projections of sales.
Verified Answer
MW
Learning Objectives
- Calculate the quantities of production budgeted, taking into account the policy on inventory and projections of sales.
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