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Yeah Company expects to sell 1,950 units of finished product in January and 2,350 units in February
Yeah Company expects to sell 1,950 units of finished product in January and 2,350 units in February. The company has 270 units on hand on January 1 and desires to have an ending inventory equal to 80% of the next month's sales. March sales are expected to be 2,400 units. Prepare Yeah's production budget for January and February Select the labels, enter the amounts and prepare the production budget for January. Then, prepare the production budget for February Yeah Company Production Budget Two Months Ended January 31 and February, 28 January February Plus: Total units needed Less: Budgeted units to be produced
Expert Solution
| Yeah Company |
| Production Budget |
| Two months ended January 31 & February 28 |
| Particulars | January | February |
| Sales units | 1,950 | 2,350 |
| + Closing inventory (80% of the next sales month) |
1,880 (2,350 *80%) |
1,920 (2,400*80%) |
| Total units needed | 3,830 | 4,270 |
| -opening inventory | 270 | 1,880 |
| Budgeted units to be produced | 3,560 | 2,390 |
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