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27 October, 08:17

The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 11,800 and 8,100 units, respectively. The desired finished goods inventory for March 31 for the Bath and Gym scale models is 15,000 and 7,500 units, respectively. Prepare a production budget for the Bath and Gym scales for the month ended March 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

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  1. 27 October, 10:26
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    Production Budget Bath 118,200

    Production Budget Gym 59400

    Explanation:

    The production budget is calculated by adding the desired finished goods ending inventory to the sales and subtracting the opening inventory from it.

    Production Budget

    Bath Gym

    Northern Sales 40,000 25000

    Southern Sales 75,000 35000 (Missing Data)

    Total Sales 115,000 60,000

    Add desired Ending

    Inventory 15000 7500

    Less Opening Inventory 11800 8100

    Production Budget 118,200 59400

    (The data in the given question was missing which has been added)

    The Production Budget figures may change if the missing data is different from the one used.
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