Question

The following information is taken from the production budget for the first quarter:Beginning inventory in units 1,800Sales budgeted for the quarter 678,000Capacity in units of production facility 708,000How many finished goods units should be produced during the quarter if the company desires 4,800 units available to start the next quarter?a. 675,000b. 681,000c. 711,000d. 682,800

Answer 1

option (b) 681,000

Step-by-step explanation:

Data provided in the question:

Beginning inventory in units = 1,800

Sales budgeted for the quarter = 678,000

Capacity in units of production facility = 708,000

Now,

Finished goods units should be produced during the quarter

= Sales + units available - Beginning inventory

on substituting the respective values, we get

= 678,000 + 4800 - 1,800

= 681,000

Hence, the correct answer is option (b) 681,000