-A Sales Budget Is Given Below for One of the Products

question 121

Essay

-A sales budget is given below for one of the products manufactured by the Key Co.:
The inventory of finished goods at the end of each month should equal 20% of the next month's sales.However,on December 31 the finished goods inventory totaled only 4,000 units.
Each unit of product requires three specialized electrical switches.Since the production of these specialized switches by Key's suppliers is sometimes irregular,the company has a policy of maintaining an ending inventory at the end of each month equal to 30% of the next month's production needs.This requirement had been met on January 1 of the current year.
Required:
a.Prepare a budget showing the required production each month for January,February,March,and April.
b.Prepare a budget showing the quantity of switches to be purchased each month for January,February,and March.
March.

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Definitions:

1309-1378

Dates defining the Avignon Papacy, a period when the popes resided in Avignon, France rather than in Rome, a situation that led to significant church conflict.

Papal Bull Unam Sanctam

A significant papal decree issued by Pope Boniface VIII in 1302, asserting the supreme spiritual authority of the Pope over kings and secular rulers.

Pope Boniface VIII

A Pope who reigned from 1294 to 1303, known for his conflicts with secular rulers and for issuing the Unam Sanctam, asserting papal supremacy.

Secular Rulers

Leaders or monarchs who hold authority in the political realm without specific endorsement from religious institutions.