Question

Diamond Company manufactures two models of cassette recorders, VCH and MTV. Based on the following production data for April of the current year. VCH MTV Estimated inventory (units), April 1 2,900 4,000 Desired inventory (units), April 30 6,900 5,250 Expected sales volume (units): Eastern zone 12,500 12,960 Midwest zone 19,000 19,800 Western zone 14,500 9,840 Prepare a production budget for April. Diamond Company Production Budget For the Month Ending April 30 VCH MTV Expected units to be sold Total Total units to be produced

Answer 1

Answer:

Total Total units to be produced:

VCH = 50,000

MTV = 43,850

Explanation:

The data in the question are merged and are first separated before answering as follows:

Details                                                               VCH           MTV

Estimated inventory (units), April 1.                 2,900        4,000

Desired inventory (units), April 30.                 6,900         5,250

Expected sales volume (units):

Eastern zone                                                    12,500       12,960

Midwest zone                                                   19,000       19,800

Western zone                                                   14,500        9,840

Now the solution as follows:

VCH expected units to be sold =  Eastern zone units + Midwest zone units + Western zone units = 12,500 + 19,000 + 14,500  = 46,000

MTV expected units to be sold =  Eastern zone units + Midwest zone units + Western zone units = 12,960 + 19,800  + 9,840  = 47,850

Diamond Company Production Budget For the Month Ending April 30

Details                                                               VCH             MTV

Expected units to be sold                              46,000        42,600

Desired inventory (units), April 30.                 6,900        5,250

Total                                                                 52,900        47,850

Estimated inventory (units), April 1.                 (2,900)     (4,000)

Total Total units to be produced                    50,000       43,850