Question

Production Budget Pasadena Candle Inc. projected sales of 800,000 candles for the year. The estimated January 1 inventory i 35,000 units, and the desired December 31 inventory is 20,000 units.

Prepare a production budget report in units for Pasadena Candle Inc.

Answer 1

Answer and Explanation:

The preparation of the production budget is presented below;

Expected sales units 800,000 candles

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

Total units available 820,000 units

Subtract: Estimated opening inventory,Jan 1 -35,000 units

Total units to be produced 785,000 units

Hence, the above format should be prepared for the production budget