Question

The following information is taken from the production budget for the first quarter: Beginning inventory in units 1,200 Sales budgeted for the quarter 426,000 Capacity in units of production facility 472,000 How many units should be budgeted to be produced during the quarter if the company desires 3,200 units at the beginning of the next quarter

Answer 1

428,000

Step-by-step explanation:

Given that:

Beginning inventory = 1,200 units

Budgeted sales = 426,000

Desired ending inventory = 3,200

Now,

Production required is given as;

= (Budgeted sales + Ending inventory required) - Beginning inventory

= (426,000 + 3,200) - 1,200

= 428,000

Therefore, production required during the quarter is 428,000