Question

Ruiz Co. provides the following unit sales forecast for the next three months: January February March Sales units2,400 3,500 4,400 The company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales. Finished goods inventory on December 31 is 240 units. The budgeted production units for February are

Answer 1

the budgeted production units for the feb month is 3,590 units

Step-by-step explanation:

The computation of the budgeted production units for the feb month is given below:

= Feb units + closing units - opening units

= 3,500 units + (4,400 units × 10%) - (3,500 units × 10%)

= 3,500 units + 440 units - 350 units

= 3,590 units

hence, the budgeted production units for the feb month is 3,590 units

The same would be considered