Question: Katherine Company's sales budget has the following unit sales projection for each quarter of the calendar year 2009.
January -March
540,000
April-June
680,000
July-September
490,000
October-December
550,000
Total
2,260,000
Sales for the first quarter of 2010 are expected to be 600,000 units. Ending inventory of finished goods for each quarter is scheduled to equal 5 percent of the next quarter's budgeted sales. The company is expected to be in compliance with this policy as of December 31, 2008. Develop a quarterly production budget for 2009 and for the year in total.
- Prepare the beginning inventory for the first quarter
- Prepare the budgeted beginning inventory for the second - fourth quarters
- Prepare the budgeted production for each quarter
- Prepare the budgeted production for the year