**Waterways Continuing Problem (This is a contineation of the Waterways Problem froes Chapsers 1 through 8….**

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## Question “Waterways Continuing Problem (This is a contineation of the Waterways Problem froes Chapsers 1 through 8….”

## Answer

**WATERWAYS COMMUNITY**

**SALES BOUND**

**FIRST QUARTER 2014**

Particulars | Jan | February | March | Quarter |

Sales in Units | 113,000 | 112,500 | 116,000 | 341,500 |

Prices in dollars ($) Unit price = $12 | 1,356,000 | 1,350,000 | 1,392,000 | 4,098,000 |

Formula= Sales unit * Unit price | 113,000*12 | 112,500*12 | 116,000*12 | 341,500*12 |

**Explanation:**

In the question, you will find the expected sales in unit for the months Jan to May. We are currently preparing the Sales budget for the quarter that runs from Jan to March. The Unit Price is $12. Multiply the Unit price by the number of units sold each month. The sales in dollars will be calculated by multiplying the unit price into the number of units sold each month. The Sales for the Quarter will be totaled over 3 months.

**WATERWAYS COMMUNITY**

**PRODUCTION BUDDGET**

**FIRST QUARTER 2014**

Particulars | Jan | February | March | Quarter |

Estimated sales in units | 113,000 | 112,500 | 116,000 | 341,500 |

(+) Planned Ending Stock | 11,250 | 11,600 | 12,500 | 12,500 |

No. total Total number of units required |
124,250 |
124,100 |
128,500 |
376,850 |

(-) Opening Inventory | 11,300 | 11,250 | 11,600 | 11,300 |

Units to be Produced |
112,950 |
112,850 |
116,900 |
342,700 |

**Explanation:**

The production budget must be calculated the number of units to be produced. The number of units that will be produced during the specified period.

**No. of Units to
be produced = Estimated sales + Closing Inventory – Opening
Inventory.**

For the months Jan to March, we have estimated units of sales. Add up all three months to get the estimated units of sales for quarter. Ending inventory is 10% of the next month’s sales. For Jan closing Inventory, we took 10% of February’s sales and 10% for Feb closing Inventory. March closing Inventory was 10% and March closing Inventory was 10%. Closing inventory is the inventory at the close of the quarter. This is the closing inventory of March.

The total number of units required for the month will be found by adding together the first two rows. The required units for each month, and the total of three months will provide the required units for the quarter.

We all know that Closing stock for one month is the closing stock of the next month. Here, the closing stock is 10% of the next month’s sales. The closing stock of December is 10% of January’s sales. This will allow us to find the Opening stock for Jan. We have also calculated the closing stock for Jan and Feb, which is the opening stock for February and March.

The quarter’s opening inventory is the inventory at the start of the quarter, which is Jan.

We now need to decrease the monthly opening stock from the Required no. To get the No. The No. Number of units that will be produced in the quarter.

## Conclusion

Above is the solution for “**Waterways Continuing Problem (This is a contineation of the Waterways Problem froes Chapsers 1 through 8….**“. We hope that you find a good answer and gain the knowledge about this topic of **business**.