For next year Flexsteel Company has budgeted sales of 40,000 units, target ending finished goods inventory of 2,000 units, and a beginning finished goods inventory of 1,200 units.All other inventories are zero.How many units should be produced?

Question

Quizplus · Accepted Answer

To calculate the number of units to be produced, use the formula: Budgeted Sales + Target Ending Inventory - Beginning Inventory. Thus, 40,000 + 2,000 - 1,200 = 40,800 units.

For Next Year Flexsteel Company Has Budgeted Sales of 40,000