The following information is taken from the production budget for the first quarter: $\begin{array}{lr}
\text { Beginning inventory in units } & 1,200 \
\text { Sales budgeted for the quarter } & 456,000 \
\text { Production capacity in units } & 472,000
\end{array}$ How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?

Question

Quizplus · Accepted Answer

To find the number of units to be produced, use the formula: Desired ending inventory + Sales budgeted - Beginning inventory. Thus, 3,200 + 456,000 - 1,200 = 458,000 units.

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