Nearing Company has provided the following information: Budgeted unit sales: Jan

Question

Nearing Company has provided the following information:

Budgeted unit sales:

January

420,000

February

400,000

March

430,000

April

450,000

Nearing Company plans on maintaining ending inventory levels equal to 40% of the following month's unit sales.

Fill in the amounts for the quarter ending March 31, 2018:

You must enter your answers in the following format: x,xxx

1) Budgeted unit sales

2) Desired units of ending finished goods inventory

3) Total needs

4) Units of beginning finished goods inventory

5) Required production in units

January

420,000

February

400,000

March

430,000

April

450,000

Explanation / Answer

1. Table showing budgeted sales in units

1,250,000

2. Desired unit if ending goods inventory =450,000*40%= 180,000 units.

3. Total needs= closing stock+ sale units

= 180,000+ 1,250,000=1,430,000 units.

4. Units in the beginning of finished goods inventory

= 420,000*40%=168,000 units.

5. Required Production in units

= Closing stock+ sales- opening stock

= 180,000+1,250,000-168,000

=1,262,000units

Month Unit January 420,000 February 400,000 March 430,000 Total

1,250,000

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.