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28 April, 19:36

Magnolia, Inc. has budgeted sales for the first quarter of the next year to be 40,000 units. The inventory on hand at the beginning of quarter is 10,000 units. The desired ending inventory is 4,000 units. Calculate the budgeted production for the first quarter.

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  1. 28 April, 23:35
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    Budgeted Produced units = 34000 units

    Explanation:

    According to the following information we need to calculate the number of units budgeted for the period:

    Beginning inventory = 10000 units

    Sales = 40000 units

    Desired ending inventory = 4000 units

    Budgeted Produced units = Sales + ending inventory - beginning inventory

    Budgeted Produced units = 40000+4000-10000=34000 units
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