Black Sabbath Ltd has budgeted the following unit sales:
The finished goods inventory on hand on 31 December 2016 was 7,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 10% of the next quarter's anticipated sales.
Instructions: Prepare a production budget for 2017.

Question

Black Sabbath Ltd has budgeted the following unit sales:
  The finished goods inventory on hand on 31 December 2016 was 7,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 10% of the next quarter's anticipated sales.
Instructions: Prepare a production budget for 2017.

Quizplus · Accepted Answer

The Answer of Black Sabbath Ltd has budgeted the following unit sales:
  The finished goods inventory on hand on 31 December 2016 was 7,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 10% of the next quarter's anticipated sales.
Instructions: Prepare a production budget for 2017.

Black Sabbath Ltd Has Budgeted the Following Unit Sales