XYZ Company produces and sells chairs. Quarterly budgeted sales are as follows:
Quarter 1 4,500
Quarter 2 5,000
Quarter 3 3,000
Quarter 4 4,800
The ending inventory of finished goods (FG) for a given quarter includes 5% of the next quarter's budgeted sales. Calculate the budgeted units to be produced for Quarter 3.

Question

Quizplus · Accepted Answer

Budgeted Units to be Produced = Budgeted Sales Volume + Target Ending FG Inventory F1F1F1S1?F1F1F10 Beginning FG Inventory = 3,000 + (4,800 × 5%) F1F1F1S1?F1F1F10 (3,000 × 5%) = 3,090 units

XYZ Company Produces and Sells Chairs