Question

Bulldog, Inc. has budgeted sales for the first quarter of the next year to be 40 comma 000 units. The inventory on hand at the beginning of quarter is 10 comma 000 units. The desired ending inventory is 5 comma 000 units. Calculate the budgeted production for the first quarter. A. 35 comma 000 units B. 5 comma 000 units C. 30 comma 000 units D. 45 comma 000 units

Answer 1

The budgeted production for the first quarter is 35000 units. So, option A is the correct answer.

Step-by-step explanation:

The budgeted production is the units that are required to be produced by the firm based on the budgeted sales and the requirement for opening and closing inventory.

The budgeted production for the first quarter can be calculated using the following formula,

Budgeted Production = Sales in units for the period + Closing inventory - Opening Inventory

Budgeted production = 40000 + 5000 - 10000 = 35000 units