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Katen [24]
2 years ago
5

The production budget shows expected unit sales of 40000. Beginning finished goods units are 3800. Required production units are

41600. What are the desired ending finished goods units
Business
1 answer:
katrin2010 [14]2 years ago
8 0

Answer:

desired ending inventory= 5,400 units

Explanation:

Giving the following information:

Sales= 40,000 units

Beginning finished goods= 3,800 units

Production= 41,600 units

<u>To calculate the desired ending inventory, we need to use the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

41,600= 40,000 + desired ending inventory - 3,800

41,600 + 3,800 - 40,000= desired ending inventory

desired ending inventory= 5,400 units

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