The following information is taken from the production budget for the first quarter:
Beginning inventory in units 1,200
Sales budgeted for the quarter 426,000
Capacity in units of production facility 472,000
How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?

Question

Quizplus · Accepted Answer

To calculate the number of units to be produced, add the desired ending inventory (3,200 units) to the sales budgeted for the quarter (426,000 units) and subtract the beginning inventory (1,200 units): 426,000 + 3,200 - 1,200 = 428,000 units.

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