Wollondilly Company has budgeted sales volume of 33 000 units and budgeted production of 30 000 units,while 5000 units are in beginning finished goods inventory.How many units are targeted for ending finished goods inventory?

Question

Quizplus · Accepted Answer

The targeted ending finished goods inventory can be calculated by adjusting the beginning inventory and production for the budgeted sales. Starting with 5,000 units in inventory, adding 30,000 units produced, and subtracting 33,000 units expected to be sold gives an ending inventory of 2,000 units.

Wollondilly Company Has Budgeted Sales Volume of 33 000 Units