Omega Enterprises budgeted the following sales in units:
Omega's policy is to have 30% of the following month's sales in inventory.On January 1, inventory equaled 8,000 units.February production in units is:

Question

Omega Enterprises budgeted the following sales in units:  
 Omega's policy is to have 30% of the following month's sales in inventory.On January 1, inventory equaled 8,000 units.February production in units is:

Quizplus · Accepted Answer

Units to Be Produced = Expected Unit Sales + Units in Desired Ending Inventory (EI) - Units in Beginning Inventory (BI)

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*January: Units in desired ending inventory (EI) = 30,000 units × 30% = 9,000 units
**February: Units in desired ending inventory (EI) = 50,000 units × 30% = 15,000 units

Omega Enterprises Budgeted the Following Sales in Units