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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)
  1. 12 April, 09:41
    0
    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.
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