Flight Company makes luggage. One popular model is the Traveller (a 50 cm wheeled carry-on). Budgeted sales for this model are: $$\begin{array} { l r }
\text { Month } & \text { Unit Sales } \
\text { March } & 28,000 \
\text { April } & 35,000 \
\text { May } & 48,000 \
\text { June } & 80,000
\end{array}$$ Desired ending finished goods inventory is 20% of the next month's sales. Finished goods inventory on March 1 is 3,500 units.
Required:
Prepare a production budget for as many months as possible.

Question

Flight Company makes luggage. One popular model is the Traveller (a 50 cm wheeled carry-on). Budgeted sales for this model are: $$\begin{array} { l r } 
\text { Month } & \text { Unit Sales } \
 \text { March } & 28,000 \
\text { April } & 35,000 \
\text { May } & 48,000 \
\text { June } & 80,000
\end{array}$$ Desired ending finished goods inventory is 20% of the next month's sales. Finished goods inventory on March 1 is 3,500 units.
Required:
Prepare a production budget for as many months as possible.

Quizplus · Accepted Answer

The Answer of Flight Company makes luggage. One popular model is the Traveller (a 50 cm wheeled carry-on). Budgeted sales for this model are: $$\begin{array} { l r } 
\text { Month } & \text { Unit Sales } \
 \text { March } & 28,000 \
\text { April } & 35,000 \
\text { May } & 48,000 \
\text { June } & 80,000
\end{array}$$ Desired ending finished goods inventory is 20% of the next month's sales. Finished goods inventory on March 1 is 3,500 units.
Required:
Prepare a production budget for as many months as possible.

Flight Company Makes Luggage Desired Ending Finished Goods Inventory Is 20% of the Next