Question

Bengal Co. provides the following...Bengal Co. provides the following sales forecast for the next three months: JulyAugustSeptemberSales units 9,500 10,200 6,050 The company wants to end each month with ending finished goods inventory equal to 30% of the next month's sales. Finished goods inventory on June 30 is 2,850 units. The budgeted production units for August are__________

Answer 1

Answer:

8,955 units

Explanation:

Given that,

Sales in July = 9,500

Sales in August = 10,200

Sales in September = 6,050

Ending finished goods inventory = 30% of the next month's sale

Budgeted production units for August:

= Sales + Closing inventory - Opening inventory

= Sales + (30% of September sales) - (30% of August sales)

= 10,200 + (0.3 × 6,050) - (0.3 × 10,200)

= 10,200 + 1,815 - $3,060

= 8,955 units