Cardle Corporation makes one product. Budgeted unit sales are shown below: The ending finished goods inventory should equal 30% of the following month's sales. The budgeted required production for February is closest to:

Question

Cardle Corporation makes one product. Budgeted unit sales are shown below:  The ending finished goods inventory should equal 30% of the following month's sales. The budgeted required production for February is closest to:

Quizplus · Accepted Answer

The budgeted required production for February is computed as follows:
 11eacbfc_c5d3_5582_8ffe_f9011f01f922_TB7552_00 *March sales of 10,100 units × 30% = 3,030 units
** February sales of 8,600 units × 30%= 2,580 units

Cardle Corporation Makes One Product