Question

champ incorporated budgets the following sales in units for the coming two months. each months ending inventory of finished units should be 50% of the next months sales. the april 30 finished goods inventory is 135 units.

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$$\begin{tabular}{lll} & may & june \\\\ budgeted sales units & 270 & 260 \\end{tabular}$$

prepare the production budget for may.

Explanation:

Identify the missing input field

Using the Production Budget and Ending Inventory Policy knowledge points

$$ \text{Missing Field} = \text{Next period budgeted sales units (June)} $$

The table has a blank cell next to "Next period budgeted sales units" under the May column. This is why the system flags the answer as "not complete."

Retrieve the next period sales units

Using the Production Budget knowledge point

$$ \text{June Budgeted Sales} = 260\text{ units} $$

Verify the remaining calculations

Using the Ending Inventory Policy knowledge point

$$
LATEXBLOCK0
$$

All calculated values are correct, but the input for "Next period budgeted sales units" must be filled with 260.

Answer:

To complete the production budget, you need to fill in the missing value for Next period budgeted sales units (which represents June's budgeted sales):

• Next period budgeted sales units: 260