Question

The ending finished goods inventory for each month equals 50% of next month's sales in units . How many units must be produced in February?

Answer 1

Answer: 15,751.5 units

Step-by-step explanation:

Units produced in February are calculated as;

Units Produced = Ending Finished goods - Beginning Finished goods + Budgeted Sales

Ending finished goods inventory for each month equals 50% of next month's sales in units.

Ending finished goods for February

= 50% * 15,581

= 7,790.5‬ units

Ending finished goods for January is beginning for February

= 50% * 15,922

= 7,961

Units Produced = Ending Finished goods - Beginning Finished goods + Budgeted Sales

= 7,790.5‬ - 7,961 + 15,922

= 15,751.5 units