Dreymon Corp. expects to sell 1,810 units of finished product in January and 2,200 units in February. The company has 240 units on hand on January 1 and desires to have an ending inventory equal to 60% of the next months sales. March sales are expected to be 2,150 units.Prepare Dreymon Corp. production budget for January and February. Dreymon Corp.Production BudgetFor the Two Months Ended February 28JanuaryFebruaryBudgeted sets to be soldPlus: Desired units in ending inventoryTotal units neededLess: Units in beginning inventoryBudgeted units to be produced1,810✓1,320✔3,130✔240✔2,890✔2,200✔1,290✔3,490✔1,320✔2,170✔Total4,010✔2,610 X6,620 X1,560 X5,060✔

Budgeting is the process of estimating future operations based on past performance. % are estimated…

Answered: Dreymon Corp. expects to sell 1,810…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 4E: Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended...

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Dreymon Corp. expects to sell 1,810 units of finished product in January and 2,200 units in February. The company has 240 units on hand on January 1 and desires to have an ending inventory equal to 60% of the next months sales. March sales are expected to be 2,150 units.

Prepare Dreymon Corp. production budget for January and February.

Dreymon Corp.
Production Budget
For the Two Months Ended February 28
January
February
Budgeted sets to be sold
Plus: Desired units in ending inventory
Total units needed
Less: Units in beginning inventory
Budgeted units to be produced
1,810✓
1,320✔
3,130✔
240✔
2,890✔
2,200✔
1,290✔
3,490✔
1,320✔
2,170✔
Total
4,010✔
2,610 X
6,620 X
1,560 X
5,060✔

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