Question

The following information is taken from the production budget for the first quarter: Beginning inventory in units 1400 Sales budgeted for the quarter 426000 Capacity in units of production facility 472000 How many finished goods units should be produced during the quarter if the company desires 3400 units available to start the next quarter?
a. 428000
b. 424000
c. 474000
d. 429400

Answer 1

Answer:

428,000

Explanation:

Data provided in the question:

Beginning inventory = 1400 units

Sales budgeted for the quarter = 426,000

Capacity in units of production facility = 472000

Desired ending inventory = 3400

Now,

The total number of units desired

= Sales + Desired ending inventory

= 426,000 + 3400

= 429,400

Total units to be produced

= The total number of units desired - Beginning inventory

= 429,400 - 1400

= 428,000