Cardel Corporation makes one product. Budgeted unit sales are shown below:
Budgeted unit sales
January 7,300
February 8,600
March 10,100
April 13,600
The ending finished goods inventory should equal 30% of the following month's sales. The budgeted required production for February is closest to:
A. 11,630 units
B. 14,210 units
C. 9,050 units
D. 8,600 units
Correct answer will be closest to C> 9050 Unit
Detail Working for yur refrence
| Feb | |
| Quantity Sold (a) | 8,600 |
|
Add: Desired Ending Inventory (30% X 10100) |
3,030 |
| Total Needs | 11,630 |
|
Less: Beginning Inventory (8600*30%) |
2,580 |
| Estimated Production | 9,050 |
The ending finished goods inventory should equal 30% of the following month's sales. The budgeted required production for February is closest to: