Small Scale Large Scale
North Region unit sales 35,000 57,000
South Region unit sales 38,000 64,000
Total 73,000 121,000
The finished goods inventory estimated for July 1, 2015, for the small and large scale models is 2,000 and 3,000 units, respectively. The desired finished goods inventory for July 31, 2015, for the small and large scale models is 1,300 and 2,300 units, respectively.
Prepare a production budget for the small and large scales for the month ended July 31, 2015.
Answer:
ACCUWEIGHT INC.
Production Budget
For the Month Ending July 31, 2015
Units
Small Scale Large Scale
Expected units to be sold 73,000 121,000
Plus desired inventory, July 31, 2015 1,300 2,300
Total 74,300 123,300
Less estimated inventory, July 1, 2015 (2,000) (3,000)
Total units to be produced 72,300 120,300