A Sales Budget Is Given Below for One of the Products

question 42

Essay

A sales budget is given below for one of the products manufactured by Trumpet, Ltd.
$$\begin{array} { | l | r | } \hline \text { Month } & \text { Sales Budget in Units } \\\hline \text { July } & 28,000 \\\hline \text { August } & 30,000 \\\hline \text { September } & 34,000 \\\hline \text { October } & 36,000 \\\hline \text { Novernber } & 29,000 \\\hline \text { December } & 26,000 \\\hline\end{array}$$
The inventory of finished goods at the end of each month must be equal to 20% of the next month's sales. On June 30, the finished goods inventory totaled 6,800 units.
Each unit of product requires ten ounces of a special chemical known as AQ-12. Sometimes the chemical is in short supply; for this reason, the company has a policy of maintaining an inventory at the end of each month equal to 75% of the next month's production needs. This requirement was met on July 1 of the current year
Required:
Prepare a budget showing the quantity of AQ-12 to be purchased for October.

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Definitions:

Moral Reasoning Ability

The capacity to understand right from wrong and to reason about how to resolve ethical dilemmas.

Temperament

An individual's innate predisposition towards emotional reactivity and intensity, influencing behavior and interactions with the environment.

Cognitive Schemas

Mental structures that an individual uses to organize knowledge and guide cognitive processes and behavior.

Lanugo

Fine, soft hair, especially that which covers the body and limbs of a human fetus or newborn.