Question

A manufacturer has budgeted sales for the first quarter of the next year to be 35 comma 000 units. The inventory in hand at the beginning of quarter is 3 comma 000 units. The desired ending inventory is 5 comma 000 units. Calculate the budgeted production for the quarter.

Answer 1

Production= 37,000 units

Step-by-step explanation:

Giving the following information:

Budgeted sales= 35,000 units

Beginning invnetory= 3,000

Desired ending inventory= 5,000

To calculate the required production, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 35,000 + 5,000 - 3,000

Production= 37,000 units