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24 July, 22:07

Wilcox Company has budgeted sales volume of 60,000 units and budgeted production of 54,000 units, while 10,000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods inventory

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  1. 24 July, 22:54
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    4,000 units

    Explanation:

    Given that

    Sales volume = 60,000 units

    Budgeted production = 54,000 units

    Beginning finished goods = 10,000 units

    The computation of units for ending finished goods inventory is computed below:-

    Budgeted production = Ending finished goods + Sales volume - Beginning finished goods

    54,000 = Ending finished goods + 60,000 - 10,000

    54,000 = Ending finished goods + 50,000

    = 4,000 units
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