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26 April, 10:22

The following information is taken from the production budget for the first quarter: Beginning inventory in units 1400 Sales budgeted for the quarter 426000 Capacity in units of production facility 472000 How many finished goods units should be produced during the quarter if the company desires 3400 units available to start the next quarter?

a. 428000

b. 424000

c. 474000

d. 429400

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  1. 26 April, 10:36
    0
    428,000

    Explanation:

    Data provided in the question:

    Beginning inventory = 1400 units

    Sales budgeted for the quarter = 426,000

    Capacity in units of production facility = 472000

    Desired ending inventory = 3400

    Now,

    The total number of units desired

    = Sales + Desired ending inventory

    = 426,000 + 3400

    = 429,400

    Total units to be produced

    = The total number of units desired - Beginning inventory

    = 429,400 - 1400

    = 428,000
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