question archive Budgeted unit sales for March, April, and May are 75,000, 80,000, and 90,000 units
Budgeted unit sales for March, April, and May are 75,000, 80,000, and 90,000 units
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Budgeted unit sales for March, April, and May are 75,000, 80,000, and 90,000 units. Management desires to maintain an ending inventory equal to 30% of the next month's unit sales. How many units should be produced in April?
a. 80,000 units
b. 83,000 units
c. 77,000 units
d. 85,000 units
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Ans:
How many units should be produced in April?
Produced unit (april) = April sales+Desired ending inventory units-Beginning inventory units
= 80000+(90000*30%)-(80000*30%)
Produced unit (april) = 83000 units
so answer is b) 83000 units
