Masde Corporation produces and sells Product CharlieD. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product CharlieD over the next four months are ...

Budgeted sales in units

June - 40,000

July - 60,000

August - 50,000

September - 80,000

Budgeted production for August would be:

Question

Business

Kirsten Hooper

12 April, 08:23

Masde Corporation produces and sells Product CharlieD. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product CharlieD over the next four months are ...

Budgeted sales in units

June - 40,000

July - 60,000

August - 50,000

September - 80,000

Budgeted production for August would be:

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Answers (1)

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Orr · Answer 1

57,500

Explanation:

Total required units:

= Expected unit sales + Desired ending finished goods unit

= 50,000 + (25% * 80,000)

= 50,000 + 20,000

= 70,000

Budgeted production for August would be:

= Total required units - Beginning finished goods unit

= 70,000 - (25% * 50,000)

= 70,000 - 12,500

= 57,500

Therefore, the budgeted production for August would be 57,500.