Chicago Furniture Company produces combination desk and chair sets for the elementary schools in the Midwest. As the second quarter is progressing it is important for the controller to complete a budget for the third quarter. The sales department manager has provided the following forecast.
|July||8,000 desk combos|
|August||8,700 desk combos|
|September||7,600 desk combos|
|October||8,700 desk combos|
|November||8,800 desk combos|
· In order to ensure Just-in-Time (JIT) deliveries are maintained in accordance with the needs of the schools Chicago Furniture Company has a standing policy that the inventory at the end of each month must be equal to 40% of the following month’s forecasted sales. On July 1st there will be 3,200 desk combos in inventory.
· The building of each desk combo requires 12 board feet of pine planks which cost $0.70 per foot. In order to maintain proper inventory for building the desk combos the department must have 30% of the next month’s production requirements.
Using Microsoft Excel, create a spreadsheet for the production and material purchases budget for the 3rd Quarter.
Deliverable Length: Excel Spreadsheet