Homework Answers
| Ans.b | YADA COMPANY | ||||
| Production Budget | |||||
| Two Months Ended January 31 and February 28 | |||||
| Particulars | January | February | |||
| Expected units to be sold | 1600 | 1950 | |||
| Add: Desired ending inventory units | 780 | 800 | |||
| Total units needed | 2380 | 2750 | |||
| Less: Beginning inventory units | -220 | -780 | |||
| Budgeted units to be produced | 2160 | 1970 | |||
| *Calculations for Ending Inventory: | |||||
| Ending inventory = Units sales for next month * 40% | |||||
| January | 1950 * 40% = 780 | ||||
| February | 2000 * 40% = 800 | ||||
| *Calculations for Beginning Inventory: | |||||
| January (given) | 220 units | ||||
| February = Ending inventory of January | 780 units | ||||
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