Based on the Following Production and Sales Data of Jackson

question 125

Essay

Based on the following production and sales data of Jackson Co.for March of the current year, prepare (a) a sales budget and (b) a production budget. $$\begin{array} { l l l } & \text { Product } T & \text { Product } X \\\text { Estimated inventory, March } 1 & 26,000 \text { units } & 18,000 \text { units } \\\text { Desired inventory, March } 31 & 32,000 \text { units } & 15,000 \text { units } \\\text { Expected sales volume: } & & \\\quad \text { Area I } & 320,000 \text { units } & 260,000 \text { units } \\\quad \text { Area II } & 190,000 \text { units } & 130,000 \text { units } \\\text { Unit sales price } & \$ 4 & \$ 12\end{array}$$

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Definitions:

Loan

A borrowed amount of money that should be returned along with an additional interest payment.

Nominal Interest Rate

The stated annual interest rate on which the compound-interest calculation is based.

Annually Compounded

Interest on an investment that is calculated once a year on both the initial principal and the accumulated interest from previous periods.

Nominal Rate

The annual interest rate not adjusted for inflation or the compounding of interest.