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6 November, 18:15

Production Budget Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Bath Scale Gym Scale Northern Region unit sales 40,000 25,000 Southern Region unit sales 75,000 35,000 Total 115,000 60,000 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. Healthy Measures Inc. Production Budget For the Month Ending March 31 Units Bath Scale Units Gym Scale Total units available Total units to be produced

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  1. 6 November, 19:29
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    Total units to be produced Bath Scale Units 118,200

    Total units to be produced Gym Scale Units 59,400

    Explanation:

    Given

    Sales

    Bath Scale Gym Scale

    Northern Region 40,000 25,000

    Southern Region 75,000 35,000

    Total 115,000 60,000

    Finished goods inventory March 1,

    Bath scale models 11,800

    Gym scale models 8,100

    Desired finished goods inventory March 31

    Bath scale models 15,000

    Gym scale models 7,500 units,

    We add ending inventory to sales and subtract beginninginventory to get Production units.

    Healthy Measures Inc.

    Production Budget

    For the Month Ending March 31

    Units Bath Scale Units Gym Scale

    Sales 115,000 60,000

    + Ending Inventory 15,000 7,500

    -Opening Inventory 11,800 8,100

    Total units to be produced 118,200 59,400
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