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The Production Manager of Dame Enterprises Plans to Have an Inventory

Question 132

Essay

The production manager of Dame Enterprises plans to have an inventory on hand at the end of each month that will equal 150% of the next month's sales. This requirement was met at the end of February. A sales budget for the four months ending June 30th is as follows:
 Month  Units  March 30,000 April 50,000 May 80,000 June 40,000\begin{array} { | l | r | } \hline \text { Month } & { \text { Units } } \\\hline \text { March } & 30,000 \\\hline \text { April } & 50,000 \\\hline \text { May } & 80,000 \\\hline \text { June } & 40,000 \\\hline\end{array}
Required:
Prepare a production budget for April and May.

Correct Answer:

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April Beginning Inventory: 50,...

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