Magnolia Inc.has budgeted sales for the first quarter of the next year to be 30,000 units.The inventory in hand at the beginning of quarter is 5,000 units.The desired ending inventory is 10,000 units.Calculate the budgeted production for the first quarter.

Question

Quizplus · Accepted Answer

The formula for calculating budgeted production is as follows:

Budgeted production = Budgeted sales + Desired ending inventory - Inventory in hand at the beginning of the period

Plugging in the given values:

Budgeted production = 30,000 + 10,000 - 5,000 = 35,000

Therefore, the correct answer is B) 35,000 units.