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31 May, 16:04

Production Budget Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pasadena Candle Inc. Production Budget For the Month Ending January 31 Total units available Total units to be produced in January

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  1. 31 May, 19:22
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    Answer and Explanation:

    The preparation of the production budget is presented below:

    Projected sales units 800,000 candles

    Add: Desired ending inventory, Dec 31 20,000 units

    Total units available 820,000 units

    Less: Estimated beginning inventory, Jan 1 - 35,000 units

    Total units to be produced 785,000 units

    We simply applied the below formula i. e

    = Sales units + ending inventory units - beginning inventory units

    By applying this formula we can get the Total units to be produced in January month
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