A Sales Budget Is Given Below for One of the Products

question 73

Essay

A sales budget is given below for one of the products manufactured by Dance, Ltd.
$$\begin{array} { | l | r | } \hline \text { Month } & \text { Sales Budget in Units } \\\hline \text { July } & 18,000 \\\hline \text { August } & 20,000 \\\hline \text { September } & 24,000 \\\hline \text { October } & 26,000 \\\hline \text { November } & 19,000 \\\hline \text { December } & 16,000 \\\hline\end{array}$$
The inventory of finished goods at the end of each month must be equal to 5,000 units plus 10% of the next month's sales. On June 30, the finished goods inventory totaled 6,800 units.
Each unit of product requires three ounces of a special liquid extract known as SV-6. Sometimes the extract is in short supply; for this reason, the company has a policy of maintaining an inventory at the end of each month equal to one half 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 SV-6 to be purchased for September.

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Definitions:

Job Security

The probability or likelihood that an individual will retain their job without the risk of becoming unemployed.

Policies

Guidelines, rules, or procedures established by an organization to regulate and guide decisions and actions in a specific area.

Union Membership

Being a formal member of a labor union, an organization that represents the collective interests of employees in negotiations with employers over wages, benefits, and working conditions.

Workplace Safety

Practices and policies in a place of employment that are designed to protect the wellbeing of employees, visitors, and the workplace environment.