Bengal Co. provides
the following sales forecast for the next three months:
July | August | September | |||||||
Sales units | 12,000 | 12,700 | 6,300 | ||||||
The company wants to end each month with ending finished goods
inventory equal to 25% of the next month's sales. Finished goods
inventory on June 30 is 3,000 units. The budgeted production units
for August are:
Multiple Choice
15,700 units.
11,125 units.
14,275 units.
11,100 units.
10,950 units.
Budgeted production in August
= Budgeted sales + Desired ending inventory - Beginning inventory
= 12,700 + (6,300*25%) - 12,700*25%)
= 12,700 + 1575 - 3175
= 11,100 units
Bengal Co. provides the following sales forecast for the next three months: July August September Sales...
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