Keep-it-Hot Inc.manufactures popular thermos flasks.On 30 June,the company had 1000 thermos flasks in inventory.Each thermos sells for $8.00.The company's policy is to maintain a thermos inventory equal to 10 per cent of next month's sales.The company expects the following sales activity for the third quarter of the year:
$\begin{array}{lc}
\text { July } & 7000 \text { units } \
\text { August } & 15000 \text { units } \
\text { September } & 10000 \text { units }
\end{array}$
In addition,October's sales are expected to be 9000 units.
Required:
A. Prepare a sales budget for the third quarter of the year.
B. Prepare a production budget for the third quarter of the year

Question

Keep-it-Hot Inc.manufactures popular thermos flasks.On 30 June,the company had 1000 thermos flasks in inventory.Each thermos sells for $8.00.The company's policy is to maintain a thermos inventory equal to 10 per cent of next month's sales.The company expects the following sales activity for the third quarter of the year:
$\begin{array}{lc}
\text { July } & 7000 \text { units } \
\text { August } & 15000 \text { units } \
\text { September } & 10000 \text { units }
\end{array}$  
In addition,October's sales are expected to be 9000 units.
Required:
A. Prepare a sales budget for the third quarter of the year.
B. Prepare a production budget for the third quarter of the year

Quizplus · Accepted Answer

The Answer of Keep-it-Hot Inc.manufactures popular thermos flasks.On 30 June,the company had 1000 thermos flasks in inventory.Each thermos sells for $8.00.The company's policy is to maintain a thermos inventory equal to 10 per cent of next month's sales.The company expects the following sales activity for the third quarter of the year:
$\begin{array}{lc}
\text { July } & 7000 \text { units } \
\text { August } & 15000 \text { units } \
\text { September } & 10000 \text { units }
\end{array}$  
In addition,October's sales are expected to be 9000 units.
Required:
A. Prepare a sales budget for the third quarter of the year.
B. Prepare a production budget for the third quarter of the year

Keep-It-Hot Inc In Addition,October's Sales Are Expected to Be 9000 Units