Company manufactures drinking glasses. One unit is a package of eight​ glasses, which sells for $18. Corbett projects sales for April will be 3,000 ​packages, with sales increasing by 300 packages per...






Company manufactures drinking glasses. One unit is a package of eight​ glasses, which sells for
$18.

Corbett

projects sales for
April

will be
3,000

​packages, with sales increasing by
300

packages per month for
May​,

June​,

and
July.

On
April

​1,
Corbett

has
325

packages on hand but desires to maintain an ending inventory of
20​%

of the next​ month's sales. Prepare a sales budget and a production budget for
Corbett

for
April​,

May​,

and
June.







Begin by preparing a sales budget for
April​,

May​,

and
June.















































Corbett Company



Sales Budget



April, May, and June







April



May



June



Total


Budgeted packages to be sold



3,000




3,300




3,600




9,900



Sales price per package



$18




$18




$18




$18



Total sales



$54,000




$59,400




$64,800




$178,200





Now prepare a production budget for
April​,

May​,

and
June.































































Corbett Company



Production Budget



April, May, and June







April



May



June



Total



(1) Budgeted packages to be sold




3,000




3,300




3,600




9,900



Plus:



(2) Desired packages in ending inventory




660




720




780







Total packages needed



3,660




4,020




4,380







Less:



(3) Packages in beginning inventory








660




720







Budgeted packages to be produced







3,360




3,660














(1)





Budgeted packages to be sold



Desired packages in ending inventory



Packages in beginning inventory







(2)





Budgeted packages to be sold



Desired packages in ending inventory



Packages in beginning inventory







(3)





Budgeted packages to be sold



Desired packages in ending inventory



Packages in beginning inventory







Jun 09, 2022
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