Question

Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 277,800 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 463,000 units; third quarter, 317,000 units; and fourth quarter, 499,000 units. Company policy calls for the ending finished goods inventory of a quarter to equal 60% of the next quarter's budgeted sales.

Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.

We a rmobile transmission for electric cars. Manage goods inventory for the first quarter will be 277,800 units. The following unit sales of the transmi the year: second quarter, 463,000 units, third quarter, 317,000 units; and fourth quarter, 499,000 ending finished goods inventory of a quarter to equal 60% of the next quarter's budgeted sales. Prepare a production budget for both the second and third quarters that shows the number of tra ELECTRO COMPANY Production Budget Second and Third Quarters Second Quarter Third Quarter Required units of available production Units to be produced

Answer 1

Electro company production budget second and third months third second quarter quarter Budgeted sales Units 4,63,000 317000 Add desired Ending inventory (60%) 190200 299400 Reequired units of available production 653200 616400 less beginning finished goods ,january 277800 190200 units to be produced 375400 426200