Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.
Material A: 0.5 lb. per unit @ $0.60 per pound
Material B: 1.0 lb. per unit @ $1.70 per pound
Material C: 1.2 lbs. per unit @ $1.00 per pound
-If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the number of units set forth in the production budget, representing total production for the current period, is

Question

Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.​
Material A: 0.5 lb. per unit @ $0.60 per pound
Material B: 1.0 lb. per unit @ $1.70 per pound
Material C: 1.2 lbs. per unit @ $1.00 per pound
-If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the number of units set forth in the production budget, representing total production for the current period, is

Quizplus · Accepted Answer

To calculate the total production for the current period, we use the formula: Production = Expected Sales + Desired Ending Inventory - Beginning Inventory. Plugging in the given numbers: 8,000 (Expected Sales) + 1,400 (Desired Ending Inventory) - 1,200 (Beginning Inventory) = 8,200 units.

Mandy Corporation Sells a Single Product