This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Hayes Company believes it can meet future sales requirements by maintaining an ending inventory equal to 20% of the next quarter's budgeted sales volume. For example, the ending finished goods inventory for the first quarter is 700 units (20% × anticipated second-quarter sales of 3,500 units). Illustration 20-5 shows the production budget. Illustration 20-5 Production budget The production budget, in turn, provides the basis for the budgeted costs for each manufacturing cost element, as explained below....
View Full Document
- Fall '11
- 20%, one quarter, Hayes Company