Carter Manufacturers have budgeted sales for the coming months as follows.
The firm has decided that to avoid losing customers because of production hold-ups it will in future maintain a finished goods inventory on hand equal to one-fifth of the following month's budgeted sales. At 31 December, the company had in finished goods stock 10 000 units. What is budgeted production for the quarter January-March?

Question

Carter Manufacturers have budgeted sales for the coming months as follows. 
The firm has decided that to avoid losing customers because of production hold-ups it will in future maintain a finished goods inventory on hand equal to one-fifth of the following month's budgeted sales. At 31 December, the company had in finished goods stock 10 000 units. What is budgeted production for the quarter January-March?

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The Answer of Carter Manufacturers have budgeted sales for the coming months as follows. 
The firm has decided that to avoid losing customers because of production hold-ups it will in future maintain a finished goods inventory on hand equal to one-fifth of the following month's budgeted sales. At 31 December, the company had in finished goods stock 10 000 units. What is budgeted production for the quarter January-March?

Carter Manufacturers Have Budgeted Sales for the Coming Months as Follows