Sparks Corp. manufactures knee braces and other orthopedic supplies. Knee braces sell for $175 each. Sparks Corp. projects sales for April will be 680 braces, with sales increasing by 85 braces per month for May, June and July. At the beginning of April Sparks Corp. has 135 braces on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare the sales budget and production budget for Sparks Corp. for the months of April, May and June.
Sparks Corp. manufactures knee braces and other orthopedic supplies. Knee braces sell for $175 each. Sparks Corp. projects sales for April will be 680 braces, with sales increasing by 85 braces per month for May, June and July. At the beginning of April Sparks Corp. has 135 braces on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare the sales budget and production budget for Sparks Corp. for the months of April, May and June.
Chapter7: Budgeting
Section: Chapter Questions
Problem 1EA: Blue Book printing is budgeting sales of 25,000 units and already has 5,000 in beginning inventory....
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Sparks Corp. manufactures knee braces and other orthopedic supplies. Knee braces sell for $175 each. Sparks Corp. projects sales for April will be 680 braces, with sales increasing by 85 braces per month for May, June and July. At the beginning of April Sparks Corp. has 135 braces on hand but desires to maintain an ending inventory of 10% of the next month's sales.
Prepare the sales budget and production budget for Sparks Corp. for the months of April, May and June.
Transcribed Image Text:Sparks Corp.
Production Budget
For the Three Months Ended June 30
May
Budgeted sets to be sold
Plus: Desired units in ending inventory
Total units needed
Less: Units in beginning inventory
Budgeted units to be produced
April
680✔
77 X
757 X
135✓
622 X
765✓
85✔
850 ✓
77 X
774 X
June
850 ✓
94 X
944 X
85✔
859 X
Total
2,295✔
94 X
2,389 X
135✔
2,254 X
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