A Sales Budget Is Given Below for One of the Products

question 102

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 must equal 20% of the next month's sales.On December 31,the finished goods inventory totaled 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:

Job Enrichment

The enhancement of a job by adding tasks that increase responsibility, autonomy, and opportunities for personal growth.

Frederick Herzberg

An American psychologist best known for developing the Motivation-Hygiene Theory, which suggests that certain factors in the workplace lead to job satisfaction, while a separate set of factors cause dissatisfaction.

Alternative Work Arrangements

include flexible work schedules, telecommuting, part-time work, and other non-traditional working conditions that can offer employees greater flexibility and satisfaction.

Diverse Workforce

An employment setting comprised of individuals from various backgrounds, including race, gender, age, and cultural heritage.