Question

Lea Company produces hand tools. Budgeted sales for March are 10,900 units. Beginning finished goods inventory in March is budgeted to be 1,400 units, and ending finished goods inventory is budgeted to be 1,600 units. How many units will be produced in March

Answer 1

The budgeted production for march is 11100 units

Step-by-step explanation:

The budgeted production for March can be calculated by adding the closing inventory figure for march and the sales in units for march and deducting the opening inventory.

The budgeted production for March = Sales + Closing Inventory - Opening Inventory

Budgeted production-March = 10900 + 1600 - 1400 = 11100 Units