The following information is taken from the production budget for the first quarter: $$\begin{array} { l r }
\text { Beginning inventory in units } & 1,200 \
\text { Sales budgeted for the quarter } & 426,000 \
\text { Capacity in units of production facility } & 472,000
\end{array}$$ How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?
A)428,000
B)424,000
C)474,000
D)429,200

Question

The following information is taken from the production budget for the first quarter: $$\begin{array} { l r } 
\text { Beginning inventory in units } & 1,200 \
\text { Sales budgeted for the quarter } & 426,000 \
\text { Capacity in units of production facility } & 472,000
\end{array}$$ How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?
A)428,000
B)424,000
C)474,000
D)429,200

Quizplus · Accepted Answer

To find the number of units to be produced, calculate: Desired ending inventory (3,200) + Sales (426,000) - Beginning inventory (1,200) = 428,000 units.

The Following Information Is Taken from the Production Budget for the First