The following information is taken from the production budget for the first quarter: $$\begin{array} { l r }
\text { Beginning inventory in units } & 1,200 \
\text { Sales budgeted for the quarter } & 456,000 \
\text { Production capacity in units } & 472,000
\end{array}$$ 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

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

Quizplus · Accepted Answer

To find the number of units to be produced, calculate: Desired ending inventory (3,200) + Sales (456,000) - Beginning inventory (1,200) = 458,000 units.

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