carol s cookies produces cookies for resale at grocery stores throughout north ameri 1571387

Carol’s Cookies produces cookies for resale at grocery stores throughout North America. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly sales were as follows (1 unit = 1 batch):

Unit sales are expected to increase 25 percent, and each unit is expected to sell for $8. The management prefers to maintain ending finished goods inventory equal to 10 percent of next quarter’s sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 9,000 units. 1. Prepare a sales budget for Carol’s Cookies using a format similar toFigure 9.3 “Sales Budget for Jerry’s Ice Cream”. (Hint: be sure to increase last year’s unit sales by 25 percent.)

2. Prepare a production budget for Carol’s Cookies using the format shown in Figure 9.4 “Production Budget for Jerry’s Ice Cream”.