In: Accounting
Shadee Corp. expects to sell 610 sun visors in May and 430 in
June. Each visor sells for $15. Shadee’s beginning and ending
finished goods inventories for May are 85 and 60 units,
respectively. Ending finished goods inventory for June will be 55
units.
Required:
1. Determine Shadee's budgeted total sales for May
and June.
2. Determine Shadee's budgeted production in units
for May and June.
Ending Inventory of May will be Beginning Inventory for June = 60 units
Calculations | Particulars | May | June |
A | Sales | 610 | 430 |
B | Opening Inventory | 85 | 60 |
C | Closing Inventory | 60 | 55 |
D = A+C-B | Budgeted Production | 585 | 425 |
E | Selling Price per unit | 15 | 15 |
F = A x E | Budgeted Sales | 9,150 | 6,450 |