A company provides the following sales forecast for the next three months; Sales
ID: 2544473 • Letter: A
Question
A company provides the following sales forecast for the next three months; Sales units: July- 4,700. August- 5,400. September- 5,260 The company wants to end each month with ending finished goods inventory equal to 25% of the next month sales. Finished goods inventory on June 30 is 1175 units. The budgeted production units for July are? A company provides the following sales forecast for the next three months; Sales units: July- 4,700. August- 5,400. September- 5,260 The company wants to end each month with ending finished goods inventory equal to 25% of the next month sales. Finished goods inventory on June 30 is 1175 units. The budgeted production units for July are? Sales units: July- 4,700. August- 5,400. September- 5,260 The company wants to end each month with ending finished goods inventory equal to 25% of the next month sales. Finished goods inventory on June 30 is 1175 units. The budgeted production units for July are?Explanation / Answer
sales
July
August
September
4700
5400
5260
Opening units of finished goods inventory
1175
units produced during the year
6050-1175
4875
total units available during the year
1350+4700
6050
less ending inventory of finished goods
25% of next month sales = 25% of 5400
1350
Units sold during the month of july
4700
Budget production of finished goods units in july
4875
sales
July
August
September
4700
5400
5260
Opening units of finished goods inventory
1175
units produced during the year
6050-1175
4875
total units available during the year
1350+4700
6050
less ending inventory of finished goods
25% of next month sales = 25% of 5400
1350
Units sold during the month of july
4700
Budget production of finished goods units in july
4875
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