A company is preparing the production budget

A company is preparing the production budget for the second quarter Projected sales (in units) are as follows:

• April 600 Units

• May 680 units

• June 750 units

The company policy decided at the start of the period on 1 April to have an ending finished goods stocks of 20% of the next month's projected sales. Assuming that there was no opening stock for April, what should be the production quota for May?

Select one:

O a. 680 units O b. 666 units O c. 830 units O d. 694 units O e. 750 units.

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The following is the forecast level of inventory (in units) for Aardvark Ltd:

-	Opening Closing
Work in process	10,000	25,000
Finished goods	20,000	15,000

If the company plans to sell 320,000 units, how many will they need to produce during the period?

Solutions

Expert Solution

	May
Opening stock	136
Projected sales	680
Desired closing stock	150	[750*20%]
Ending stock	694	[680+150-136]

Option d, 694 units

8. Option , 315000 [ 320,000 - 20,000+ 15000]

ekkarill92 answered 2 years ago

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