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Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767 Exercise 37
Production Budget
Pumpro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows:
Company policy requires that ending inventories for each month be 30 percent of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 40,000.
Required:
Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
Pumpro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows:
Company policy requires that ending inventories for each month be 30 percent of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 40,000.
Required:
Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
Explanation
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Verified
1. The following table exhibits the prod...
Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
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