Question

Pasadena Candle Inc. projected sales of 800,000 candles for the year. The estimated January 1 inventory is 35,000 units, and the desired December 31 inventory is 20,000 units. Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answer 1

Total units to be produced   = 785000  

Explanation:

production budget report in units for Pasadena Candle Inc is as follows:

using the data as per given in the question:

Expected units to be sold                 800000  

Desired ending inventory, Dec 31  20000  

Total units available                         820000  

Estimated beginning inventory, Jan 1  -35000  

Total units to be produced            785000

Note: Desired ending inventory is the sum total of expected units that hev been sold and desired ending inventory at the year end.

Note: The begining inventory is to be deducted from the total units available.