Question

Jumber Corp makes one product. Budgeted unit sales are shown belowJan 7300Feb 8600March 10100April 13600The ending finished goods inventory should equal 30% of the following month's sales. The budgeted required production for February is closest to:A) 8600 unitsB) 11630 unitsC) 9050 unitsD) 14210 units

Answer 1

Answer: 9050 units

Step-by-step explanation:

From the information given in the question, the following can be deduced:

Budgeted sales for February = 8,600

Add: Desired ending inventory = 3% × 10100 = 0.3 × 10100 = 3,030

Total needs = 8600 + 3030 = 11630

Less: Beginning inventory = (2,580)

Required production = 9050

The budgeted required production for February is 9050 units