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29 July, 08:02

Pasadena Candle Inc. projected sales of 63,000 candles for January. The estimated January 1 inventory is 3,200 units, and the desired January 31 inventory is 6,000 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. 29 July, 10:17
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    Answer and Explanation:

    The Preparation of production budget report in units is shown below:-

    Pasadena Candle Inc.

    Production budget report

    For the year ended Jan 31

    Particulars Units

    Expected units to be sold 63,000

    Add: Desired ending inventory, Jan 31 6,000

    Total units available 69,000

    Less: Estimated beginning inventory, January 1 - 4,300

    Total units to be produced 64,700

    Therefore we simply deduct the Estimated beginning inventory, Jan 1 from total units available to reach the total units to be produced
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