Question

Is budgeting sales of 100,000 units. beg inv is 11,000 units and target ending inv is 7,000 units. what should be the budgeted operating plan?

Answer 1

To determine the budgeted operating plan, the number of units to be produced needs to be calculated. The formula to calculate the number of units is: Units to be produced = Budgeted sales + Target ending inventory - Beginning inventory. Using the given information, the budgeted operating plan should be to produce 96,000 units.

Step-by-step explanation:

In order to determine the budgeted operating plan, we need to calculate the number of units to be produced. The formula to calculate the number of units to be produced is:

Units to be produced = Budgeted sales + Target ending inventory - Beginning inventory

Using the given information, the calculation would be:

Units to be produced = 100,000 + 7,000 - 11,000 = 96,000

The budgeted operating plan should be to produce 96,000 units.