Ask Question
30 September, 17:41

Steven's Co. provides the following sales forecast for the next three months: July August September Sales units 5,000 5,700 5,560 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for July are: a. 3,750 units.

b. 6,425 units.

c. 2,500 units.

d. 5,175 units.

e. 6,250 units.

+2
Answers (1)
  1. 30 September, 20:10
    0
    d. 5,175 units.

    Explanation:

    The computation of the budgeted production units for July is shown below:

    = Sale units + ending inventory units - beginning inventory units

    where,

    Sale units is 5,000 units

    Ending finished inventory units = 5,700 units * 25% = 1,425 units

    Beginning finished inventory units = 1,250 units

    Now put these units to the above formula

    So, the units would equal to

    = 5,000 units + 1,425 units - 1,250 units

    = 5,175 units
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Steven's Co. provides the following sales forecast for the next three months: July August September Sales units 5,000 5,700 5,560 The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers