Carter Manufacturers have budgeted sales for the coming months as follows: Janua

Question

Carter Manufacturers have budgeted sales for the coming months as follows:

January                               160 000 units

February                             240 000 units

March                                 200 000 units

April                                    400 000 units

May                                    150 000 units

The firm has decided that to avoid losing customers because of production hold-ups it will in future maintain a finished goods inventory on hand equal to one-fifth of the following month's budgeted sales. At 31 December the company had in finished goods stock 10 000 units. What is budgeted production for the quarter January-March?

530 000 units

830 000 units

670 000 units

970 000 units

680 000 units

Explanation / Answer

Budgeted production for the quarter January-March = (160000+240000+200000)+(400000/5)-10000= 670000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

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