Question

The following information is taken from the production budget for the first quarter: Beginning inventory in units 1200 Sales budgeted for the quarter 356000 Capacity in units of production facility 402000 How many finished goods units should be produced during the quarter if the company desires 3200 units available to start the next quarter

Answer 1

358,000

Step-by-step explanation:

The number of units to be produced is dependent on the desired closing units, the sales and opening balance

Hence,

Opening balance + Units produced - Sales = Closing balance

Let the goods produced be y

1,200 + y - 356,000 = 3,200

y = 3,200 + 356,000 - 1,200

y = 358,000

The company should produce 358,000 units during the quarter if company desires 3,200 units available to start the next quarter.