Complete Question:
Yasmin Company expects to sell 1,900 units of finished product in January and 2,250 units in February. The company has 270 units on hand on 1st January and desires to have an ending inventory equal to 20% of the next month's sales. March sales are expected to be 2,350 units. Prepare Yasmin's production budget for January and February.
Answer:
680 Units for January and 250 units for February.
Step-by-step explanation:
Production Budget can be calculated using the following formula:
Production Budget = Expected Sales + Desired Ending Inventory Units - Opening Inventory
The formula is reflected in a tabular form below:
Production Budget For Yasmin Incorporation
January February
Expected Future Sales (Unit) 900 250
Add: Desired Ending Inventory Units 50 70
Less: Openning Inventory Units 270 70
Production Units 680 250