Production Budget (accounting Homework Help)?

Question

VitaPup produces a vitamin enhanced dog food that is sold in kansas. The company expects sales to be 12,600 bags in January, 14,500 bags in February, 19,000 bags in March and 21,500 bags in April. There are 1,260 bags on hand at the start of January. VitaPup desires to maintain monthly ending inventory equal to 10 percent of next month's expected sales.

A) Prepare the production budget for VitaPup for the month of January, February and March.

Answer 1

For January, subtract 1260 from the expected sales of 12600. The result should be added to 10% of February's expected sales. That will be the total you want to buy for January-- 12790.

For February, subract the left over of 1450 from the expected sales of 14500 for February. The result should be added to 10% of March's expected sales. That will be total you need to buy for February.

Etc...