Surprise Company's sales budget showed expected sales of 13,400 widgets.Beginning finished goods contained 1,200 widgets.The company determined that 14,100 units should be produced.How many widgets will the company have on hand at the end of the year?

Question

Quizplus · Accepted Answer

The company has to produce 14,100 widgets, and at the beginning, they already have 1,200 widgets. Therefore, the total number of widgets available is:

1,200 (Beginning finished goods) + 14,100 (Expected production) = 15,300 widgets

However, the sales budget only shows an expected sales volume of 13,400 widgets. Therefore, the number of widgets that the company will have on hand at the end of the year is:

15,300 (total available) - 13,400 (expected sales) = 1,900 widgets

So the correct answer is C) 1,900.

Surprise Company's Sales Budget Showed Expected Sales of 13,400 Widgets