Sugar CoHas Forecast Sales for the Next Four Months as Follows

Essay

Sugar Co.has forecast sales for the next four months as follows: July 4,000 units,August 6,000 units,September 7,500 units,and October 8,000 units.Sugar's policy is to have an ending inventory of 40% of the next month's sales needs on hand.July 1 inventory is projected to be 1,500 units.Manufacturing overhead is budgeted to be $17,000 plus $5 per unit produced.
a.Prepare a production budget for Sugar for as many months as is possible.
b.Prepare a manufacturing overhead budget for the three months July - September.Be sure to include a total for the quarter as well.