PLEASE, PLEASE, can you give me the step to calculate these:
1.Prepare the beginning inventory for the first quarter
2.Prepare the budgeted beginning inventory for the second - fourth quarters
3.Prepare the budgeted production for each quarter
4.Prepare the budgeted production for the year
I will appreciate it, thank you
Of course! I'd be happy to help you with these calculations. To determine the answers to these questions, you'll need to gather some information. Let's break it down step by step:
1. To calculate the beginning inventory for the first quarter, you need to know the inventory at the end of the previous year or the beginning of the current year. Once you have that information, you can use the formula:
Beginning Inventory (Q1) = Ending Inventory (Previous Year/Quarter)
2. For the budgeted beginning inventory for the second - fourth quarters, you will need to take into account any adjustments or changes in the inventory levels. The formula for each quarter would be:
Budgeted Beginning Inventory (Q2 to Q4) = Ending Inventory (Previous Quarter) + Net Adjustments
3. To prepare the budgeted production for each quarter, you will need to consider factors such as sales forecasts, market demand, production capacity, and any other relevant factors. The formula for each quarter would be:
Budgeted Production (Q1 to Q4) = Sales Forecast (Q1 to Q4) + Desired Ending Inventory (Q1 to Q4) - Beginning Inventory (Q2 to Q5)
4. Lastly, to calculate the budgeted production for the year, you will sum up the budgeted production for each quarter. The formula would be:
Budgeted Production (Year) = Budgeted Production (Q1) + Budgeted Production (Q2) + Budgeted Production (Q3) + Budgeted Production (Q4)
By following these steps and collecting the necessary data, you can successfully calculate the requested values.