Sunshine Inc.manufactures kiddie pools.On 31 March,the company had 750 pools in inventory.Each pool sells for $25.00.The company's policy is to maintain a pool inventory equal to 15 per cent of next month's sales.The company expects the following sales activity for the second quarter of the year:
$\begin{array}{lr}
\text { April } & 5000 \text { units } \
\text { May } & 9000 \text { units } \
\text { June } & 16000 \text { units }
\end{array}$
In addition,July's sales are expected to be 20 000 units.
Required:
A. Prepare a sales budget for the second quarter of the year.
B. Prepare a production budget for the second quarter of the year.

Question

Sunshine Inc.manufactures kiddie pools.On 31 March,the company had 750 pools in inventory.Each pool sells for $25.00.The company's policy is to maintain a pool inventory equal to 15 per cent of next month's sales.The company expects the following sales activity for the second quarter of the year:
$\begin{array}{lr}
\text { April } & 5000 \text { units } \
\text { May } & 9000 \text { units } \
\text { June } & 16000 \text { units }
\end{array}$  
In addition,July's sales are expected to be 20 000 units.
Required:
A. Prepare a sales budget for the second quarter of the year.
B. Prepare a production budget for the second quarter of the year.

Quizplus · Accepted Answer

The Answer of Sunshine Inc.manufactures kiddie pools.On 31 March,the company had 750 pools in inventory.Each pool sells for $25.00.The company's policy is to maintain a pool inventory equal to 15 per cent of next month's sales.The company expects the following sales activity for the second quarter of the year:
$\begin{array}{lr}
\text { April } & 5000 \text { units } \
\text { May } & 9000 \text { units } \
\text { June } & 16000 \text { units }
\end{array}$  
In addition,July's sales are expected to be 20 000 units.
Required:
A. Prepare a sales budget for the second quarter of the year.
B. Prepare a production budget for the second quarter of the year.

Sunshine Inc In Addition,July's Sales Are Expected to Be 20 000 Units