Question

The following information is taken from the production budget for the first quarter: Beginning inventory in units 600 Sales budgeted for the quarter 506000 Capacity in units of production facility 552000 How many finished goods units should be produced during the quarter if the company desires 2600 units available to start the next quarter?

Answer 1

508,000 units

Step-by-step explanation:

The computation of the number of finished goods produced is shown below:

Finished goods produced during the year = Closing inventory + sales - opening inventory

= 2,600 units + 506,000 units - 600 units

= 508,000 units

We simply added the closing inventory into sales and deducted the opening inventory so that the finished goods produced during the year could come