Production Budget Preparation Assignment.docx - Phia...

Phia Vhianna Reign S. Ramirez
ABM 12-A
Production Budget Preparation
Assignment
Direction: Provide all the necessary requirements for each problem. Use the formula given in
your book or module. Show your solutions. Deadline of submission is on or before 11:59pm of
April 3, 2022.
Problem 1:
Determine the number of units to be produced in 2023 given the following information:
Inventories at the Beginning of the Year 250,000 units
Projected Sales in 2023 5,750,000 units
Target Level of Ending inventories 400,000 units
Problem 2:
a) Inventories, December 31, 2021 450,000 units
b) Projected Quarterly Sales and Target level of Ending inventories in 2022:
Quarter Projected Sales
Target Level of
Ending Inventories
1 3,500,000 500,000
2 4,500,000 500,000
3 5,000,000 1,000,000
4 8,000,000 550,000