A Sales Budget Is Given Below for One of the Products

question 92

Essay

A sales budget is given below for one of the products manufactured by Trumpet,Ltd. $$\begin{array} { | l | r | } \hline \text { Month } & \begin{array} { r } \text { Sales Budget } \\\text { in Units }\end{array} \\\hline \text { July } & 28,000 \\\hline \text { August } & 30,000 \\\hline \text { September } & 34,000 \\\hline \text { October } & 36,000 \\\hline \text { November } & 29,000 \\\hline \text { December } & 26,000 \\\hline\end{array}$$ The inventory of finished goods at the end of each month must be equal to 20% of the next month's sales.On June 30,the finished goods inventory totaled 6,800 units.Each unit of product requires ten ounces of a special chemical known as AQ-12.Sometimes the chemical is in short supply;for this reason,the company has a policy of maintaining an inventory at the end of each month equal to 75% 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 AQ-12 to be purchased for October.

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Definitions:

E-Mail

A method of exchanging digital messages over the Internet between people using electronic devices.

Fixed Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Reinforcement

In behavior psychology, a stimulus or event that follows a behavior and increases the likelihood of that behavior occurring again.

Response

A reaction to a specific stimulus or situation, often studied in psychology to understand behavior.