Crosson Wineries & Bottling Is Preparing Its Budget for 2010

question 18

Essay

Crosson Wineries & Bottling is preparing its budget for 2010 and has completed the sales budget for the first six months of the year.The projected volume is as follows:
$$\begin{array} { | l r | } \hline \text { January } & 50,000 \text { bottles } \\\text { February } & 60,000 \text { bottles } \\\text { March } & 100,000 \text { bottles } \\\text { April } & 80,000 \text { bottles } \\\text { May } & 40,000 \text { bottles } \\\text { June } & 20,000 \text { bottles } \\\hline\end{array}$$
The desired ending inventory for each month must be equal to 30 percent of the next month's sales.The December 31,2009,inventory was 15,000 bottles.
a. Prepare the production budget for the first four months of 2010.
b. Explain why Crosson Wineries & Bottling must produce more bottles than it sells in January and February, and why it must produce fewer bottles than it sells in March and April.
c. Assume each finished bottle requires 25 ounces of wine and that the ending inventory each month must be equal to 20 percent of the next month's production needs. The December 31, 2009, inventory of wine was 265,000 ounces. Prepare the direct materials purchases budget for the first three months of 2010.

Identify misconceptions about sexual behavior and disorders.

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Recognize the value of communication and mutual responsibility in addressing sexual dysfunctions within relationships.

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Definitions:

Shares Issued

The number of shares that have been allocated and are held by shareholders, including both public investors and company insiders or affiliates.

Treasury Stock

Stocks that have been initially distributed and then bought back by the company that issued them, thus decreasing the quantity of available shares in the market.

Contra Equity Account

An equity account where balances are opposite to the normal accounts and are used to reduce the value of equity accounts.

Voting Rights

The entitlements of shareholders to vote on company matters, typically proportional to the number of shares they hold.