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20 December, 08:28

Diamond Company manufactures two models of cassette recorders, VCH and MTV. Based on the following production data for April of the current year. VCH MTV Estimated inventory (units), April 1 2,900 4,000 Desired inventory (units), April 30 6,900 5,250 Expected sales volume (units) : Eastern zone 12,500 12,960 Midwest zone 19,000 19,800 Western zone 14,500 9,840 Prepare a production budget for April. Diamond Company Production Budget For the Month Ending April 30 VCH MTV Expected units to be sold Total Total units to be produced

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  1. 20 December, 12:00
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    Total Total units to be produced:

    VCH = 50,000

    MTV = 43,850

    Explanation:

    The data in the question are merged and are first separated before answering as follows:

    Details VCH MTV

    Estimated inventory (units), April 1. 2,900 4,000

    Desired inventory (units), April 30. 6,900 5,250

    Expected sales volume (units):

    Eastern zone 12,500 12,960

    Midwest zone 19,000 19,800

    Western zone 14,500 9,840

    Now the solution as follows:

    VCH expected units to be sold = Eastern zone units + Midwest zone units + Western zone units = 12,500 + 19,000 + 14,500 = 46,000

    MTV expected units to be sold = Eastern zone units + Midwest zone units + Western zone units = 12,960 + 19,800 + 9,840 = 47,850

    Diamond Company Production Budget For the Month Ending April 30

    Details VCH MTV

    Expected units to be sold 46,000 42,600

    Desired inventory (units), April 30. 6,900 5,250

    Total 52,900 47,850

    Estimated inventory (units), April 1. (2,900) (4,000)

    Total Total units to be produced 50,000 43,850
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