Question

Horngren's Accounting Eleventh Edition

Jones manufactures golf balls. One unit is a package of 12 balls which sells for $50. Jones projects sales for April to be 400 packages with a 10% increase from April in May, and 20% increase from April in June and July. On April 1, Jones had 55 packages on hand but desires to maintain an ending inventory of 15% of the next month's sales. Prepare a sales budget and production budget for Jones for April, May, and June.

Prepare a sales budget and a production budget for Jones for April, May, June.

JONES COMPANY
Sales Budget
For the Three Months Ended June 30
				April	May	June	Total
Budgeted Packages to Be Sold
Sales Price per Package
Total Sales
JONES COMPANY
Production Budget
For the Three Months Ended June 30
				April	May	June	Total
Budgeted Packages to Be Sold
Desired Packages in Ending Inventory (see below)
Calculations for Desired Packages in Ending Inventory % # Packages Desired Ending Inventory April x =              -   packages May x =              -   packages June x =              -   packages

Answer 1

		JONES COMPANY
		Sales Budget
		For the Month Ended 30 June
			April	May	June	Total		April	May	June	July
		Budgeted Packages to be sold	400	440	480	1320			400*110%	400*120%	400*120%
		Sales Price Per Package	50	50	50	50
		Total Sales	20000	22000	24000	66000
		JONES COMPANY
		Production Budget
		For the Month Ended 30 June
			April	May	June	Total
		Budgeted Packages to be sold	400	440	480	1320
		Desired Package in Ending Inventory	66	72	72	72
		Total Package Required	466	512	552	1392
		Less: Opening Inventory-Package	55	66	72	55
		Production Budget	411	446	480	1337
		Calculation of Desired Package in Ending Inventory:	%X	Package=	Desired Ending Inventory
		April	15%	440	66
		May	15%	480	72
		June	15%	480	72