Question

In: Accounting

Bengal Co. provides the following sales forecast for the next three months:

Bengal Co. provides the following sales forecast for the next three months:

The company wants to end each month with ending finished goods inventory equal to 25% of the next month sales. Finished goods inventory on June 30 is 1, 250 units. The budgeted production units for August are

6, 950 units.

4, 310 units.

7, 090 units.

5, 565 units.

4,135 units.

 

Solutions

Expert Solution

CALCULATE BUDGETED PRODUCTION UNITS FOR AUGUST :

Given ,

Budgeted Sales (units) 5700

Desired ending inventory (5560*25%) 1390

Beginning Inventory (5700*25%) (1425

 

Units

Budgeted Sales (units)                                   5700

Add: Desired ending inventory

(5560*25%)                                                       1390

                                                                            7090

Less : Beginning Inventory (5700*25%)      (1425)

Production units in August                             5665

 

SO answer is d) 5665 Units

 

Answer : 

The budgeted production units for August are:

d) 5665 Units

 The budgeted production units for August are :

d) 5665 Units

S Mahalaxmi answered 3 years ago
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