QuestionJuly 22, 2025

J-Harrison Co. manufactures decorative pillows designed for use on outdoor patios.Each pillow has a retail sales price of 20 The company's inventory policies require that 30 percent of next month's sales be on hand at the end of each month. The following information is available regarding budgeted unit sales of pillows: - February: 25,000 - March: 22,000 - April: 30,000 - May: 44,000 - June: 40,000 Q1: What is the budgeted sales revenue for June? square Q2: What is the budgeted production needs for April? square

J-Harrison Co. manufactures decorative pillows designed for use on outdoor patios.Each pillow has a retail sales price of 20 The company's inventory policies require that 30 percent of next month's sales be on hand at the end of each month. The following information is available regarding budgeted unit sales of pillows: - February: 25,000 - March: 22,000 - April: 30,000 - May: 44,000 - June: 40,000 Q1: What is the budgeted sales revenue for June? square Q2: What is the budgeted production needs for April? square
J-Harrison Co. manufactures decorative pillows designed for use on outdoor patios.Each pillow has a retail sales
price of 20 The company's inventory policies require that 30 percent of next month's sales be on hand at the end
of each month. The following information is available regarding budgeted unit sales of pillows:
- February: 25,000
- March: 22,000
- April: 30,000
- May: 44,000
- June: 40,000
Q1: What is the budgeted sales revenue for June? square 
Q2: What is the budgeted production needs for April? square

Solution
4.7(313 votes)

Answer

Q1: \800,000 ### Q2: 32,200 pillows Explanation 1. Calculate Budgeted Sales Revenue for June Multiply the unit sales for June by the retail price per pillow. **Sales Revenue = Unit Sales \times Price per Unit**. For June, 40,000 \times 20. 2. Determine Ending Inventory for April Calculate 30% of May's sales to find the ending inventory for April. **Ending Inventory = 0.3 \times \text{May's Sales}**. For May, 0.3 \times 44,000. 3. Determine Beginning Inventory for April Use 30% of April's sales as the beginning inventory for April. **Beginning Inventory = 0.3 \times \text{April's Sales}**. For April, 0.3 \times 30,000. 4. Calculate Production Needs for April Use the formula: **Production Needs = (April's Sales + Ending Inventory) - Beginning Inventory**. Substitute values from previous steps.

Explanation

1. Calculate Budgeted Sales Revenue for June<br /> Multiply the unit sales for June by the retail price per pillow. **Sales Revenue = Unit Sales \times Price per Unit**. For June, $40,000 \times 20$.<br /><br />2. Determine Ending Inventory for April<br /> Calculate 30% of May's sales to find the ending inventory for April. **Ending Inventory = 0.3 \times \text{May's Sales}**. For May, $0.3 \times 44,000$.<br /><br />3. Determine Beginning Inventory for April<br /> Use 30% of April's sales as the beginning inventory for April. **Beginning Inventory = 0.3 \times \text{April's Sales}**. For April, $0.3 \times 30,000$.<br /><br />4. Calculate Production Needs for April<br /> Use the formula: **Production Needs = (April's Sales + Ending Inventory) - Beginning Inventory**. Substitute values from previous steps.
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