Question

The production budget shows expected unit sales are 100,000. The required production units are 104,000. What are the beginning and desired ending finished goods units, respectively?

Answer 1

Answer:

Beginning units are 6,000

Desired ending units are 10,000

Explanation:

The required production unit + beginning FG units would be equal to the ending FG units + expected unit sales

Beg FG + 104,000 = End FG +100,000

6,000 + 104,000= 10,000 + 100,000

110,000 = 110,000.

Beg FG = 6,000

End FG = 10,000