Answer:
Total production for February= 36,000 units
Explanation:
Giving the following information:
Units:
February= 30,000
March= 50,000
Omega's policy is to have 30% of the following month's sales in inventory.
To calculate the budgeted units for February, we need to sum the sales for the month to the ending inventory required, and deduct the beginning inventory:
Production budget:
Sales for the month= 30,000
Ending inventory= (50,000*0.3)= 15,000
Beginning inventory= (30,000*0.3)= (9,000)
Total= 36,000 units
