Jannusch Corporation makes one product. Budgeted unit sales for July, August, September, and October are 10,000, 11,600, 13,300, and 12,700 units, respectively. The ending finished goods inventory should equal 20% of the following month's sales. The budgeted required production for August is closest to:

Question

Business

Payton Werner

7 April, 06:58

Jannusch Corporation makes one product. Budgeted unit sales for July, August, September, and October are 10,000, 11,600, 13,300, and 12,700 units, respectively. The ending finished goods inventory should equal 20% of the following month's sales. The budgeted required production for August is closest to:

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Answers (1)

Know the Answer?

Avery Cooley · Answer 1

11,940 units

Explanation:

The computation of the budgeted required production is shown below:

= Sale units + ending inventory units - beginning inventory units

where,

Sale units is 11,600 units

Ending finished inventory units = 13,300 units * 20% = 2,660 units

Beginning finished inventory units = 11,600 * 20% = 2,320 units

Now put these units to the above formula

So, the units would equal to

= 11,600 units + 2,660 units - 2,320 units

= 11,940 units