Solved

A Sales Budget Is Given Below for One of the Products

Question 109

Essay

A sales budget is given below for one of the products manufactured by Trumpet, Ltd.
 Month  Sales Budget in Units  July 28,000 August 30,000 September 34,000 October 36,000 Novernber 29,000 December 26,000\begin{array} { | l | r | } \hline \text { Month } & \text { Sales Budget in Units } \\\hline \text { July } & 28,000 \\\hline \text { August } & 30,000 \\\hline \text { September } & 34,000 \\\hline \text { October } & 36,000 \\\hline \text { Novernber } & 29,000 \\\hline \text { December } & 26,000 \\\hline\end{array}
The inventory of finished goods at the end of each month must be equal to 20% of the next month's sales. On June 30, the finished goods inventory totaled 6,800 units.
Each unit of product requires ten ounces of a special chemical known as AQ-12. Sometimes the chemical is in short supply; for this reason, the company has a policy of maintaining an inventory at the end of each month equal to 75% of the next month's production needs. This requirement was met on July 1 of the current year
Required:
Prepare a budget showing the quantity of AQ-12 to be purchased for October.

Correct Answer:

verifed

Verified

\[\begin{array} { l r r }
& \text { Oct...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents