Question

Bengal Co. provides the following sales forecast for the next three months: July August September Sales...

Bengal Co. provides the following sales forecast for the next three months: July August September Sales units 4,000 4,700 4,560 The company wants to end each month with ending finished goods inventory equal to 30% of the next month's sales. Finished goods inventory on June 30 is 1,200 units. The budgeted production units for July are:

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Answer #1

Calculation of Budgeted Production units for July :-

Particulars Amount($)
Ending Inventory Balance ($4700 * 30%) 1410
Add : Sales of July 4000
Less : Beginning Inventory Balance (1200)
Budgeted Production Units for July 4210
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