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Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows Sales in Units July

Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:

 

 

Sales in Units

July . . . . . . . . . . . . . . . . . . . . . . . .

30,000

August . . . . . . . . . . . . . . . . . . . . . .

45,000

September . . . . . . . . . . . . . . . . . . .

60,000

October . . . . . . . . . . . . . . . . . . . . .

50,000

 

The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next month’s sales. The inventory at the end of June was 3,000 units.

Required:

Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.

Jun 29 2020 View more View Less

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