Question

Need help preparing a production budget ( as seen in the second photo) The first photo is part 1 and is information that can be used to help for the budget.
Novak Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $20. Novak projects sales for April will be 2,500 packages, with sales increasing by 400 packages per month for May, June, and July. On April 1,Novak has 150 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Novak for April, May, and June. Begin by preparing a sales budget for April, May, and June. Novak Company Sales Budget April, May, and June April May June Total 2,900 8,700 20 $50,000$58,000 S 66,000$174,000 2.500 3,300 Budgeted packages to be sold Sales price per package Total sales Now prepare a production budget for April, May, and June 20 $ 20 S 20 $

Answer 1

			April	May	June	Total
Expected sale units			2,500	2,900	3,300	8,700
plus:Ending inventory			290	330	370	370
total packages needed			2,790	3,230	3,670	9,070
less:Beginning inventory			150	290	330	150
Budgeted packages to be produced			2,640	2,940	3,340	8,920