Answer Happy

revenue Hoffman Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows: Total sales Number of jars sold 1st quarter ... $ 181,000 152,500 2nd quarter $ 219,000 181,500 3rd quarter 255,000 213,000 4th quarter ...$ 199,000 160,500 - + ... $ Prepare the production budget by first calculating the total units needed, then calculate the units to produce. Hoffman Foods Production Budget For the Quarters in the Upcoming Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Unit sales Plus: Desired ending inventory Total needed
Hoffman anticipates selling 223,000 jars with total sales revenue of $260,000 in the first quarter of the year following the year given in the preceding table. Hoffman has a policy that the ending inventory of jars must be 30% of the following quarter's sales. Requirement Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in total