Modesto Company produces and sells Product AlphaB.To guard against stockouts,the company requires that 20% of the next month's sales be on hand at the end of each month.Budgeted sales of Product AlphaB over the next four months are: Budgeted production for August would be:

Question

Quizplus · Accepted Answer

11eaaee8_6710_04e5_933a_df8268422db1_TB5186_00 Units produced = Ending inventory + Units sold - Beginning inventory
= (20% F1F1F1S1F1F1F10 50,000) + 60,000 - (20% F1F1F1S1F1F1F10 60,000)
= 10,000 + 60,000 - 12,000 = 58,000

Modesto Company Produces and Sells Product AlphaB