Fly GenX Inc. has the following budgeted sales for the next quarter. Month: 1 2 3 Units 10,000 11,000 12,000 Inventory of finished goods on hand at the beginning of the quarter is 4,000 units. The company desires to maintain ending inventory equal to beginning inventory plus 1,000 units every month. Calculate the quantity to be produced during the quarter through completing the following production budget.

Question

Business

Gillian Krause

7 November, 04:20

Fly GenX Inc. has the following budgeted sales for the next quarter. Month: 1 2 3 Units 10,000 11,000 12,000 Inventory of finished goods on hand at the beginning of the quarter is 4,000 units. The company desires to maintain ending inventory equal to beginning inventory plus 1,000 units every month. Calculate the quantity to be produced during the quarter through completing the following production budget.

+4

Answers (1)

Know the Answer?

Johnathon James · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

Month: 1 2 3 Units 10,000 11,000 12,000

Inventory of finished goods on hand at the beginning of the quarter is 4,000 units.

The company desires to maintain ending inventory equal to beginning inventory plus 1,000 units every month.

Month 1:

Production = 10,000 units

Ending inventory = 4,000 + 1,000 = 5,000

Beginning inventory = (4,000)

Total = 11,000

Month 2:

Production = 11,000 units

Ending inventory = 5,000 + 1,000 = 6,000

Beginning inventory = (5,000)

Total = 12,000

Month 3:

Production = 12,000 units

Ending inventory = 6,000 + 1,000 = 7,000

Beginning inventory = (6,000)

Total = 13,000