Broughton Corp. has prepared a production budget for February. Management has determined that the total required production for February is 180,000 units when an ending inventory of 20,000 units is desired and the beginning inventory is 5,000 units. Based on the above information, what were February's budgeted sales?
A) 195,000 units
B) 180,000 units
C) 165,000 units
D) 185,000 units

Question

Quizplus · Accepted Answer

To determine the February's budgeted sales, we need to use the following formula:

Budgeted sales = Required production + Beginning inventory - Ending inventory

Plugging in the given numbers, we get:

Budgeted sales = 180,000 units + 5,000 units - 20,000 units
Budgeted sales = 165,000 units

Therefore, the correct answer is C) 165,000 units.