A Sales Budget Is Given Below for One of the Products

question 80

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 totalled 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:
Prepare a budget showing the quantity of switches to be purchased each month for January,February,and March,and in total for the quarter.

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Definitions:

Uneven Participation

A situation within a team or group where there is an unequal level of involvement or contribution among members.

Creative Teams

Groups of individuals working together, blending their skills, talents, and perspectives to generate innovative solutions and ideas.

Cross-functional

Involving or relating to several different functions or departments within an organization working together on a common project or towards a common goal.

Operations Team

A group of individuals responsible for overseeing the day-to-day operational functions of a business or organization.