Answer:
The budgeted production of the units for the month of July are 5,175 units
Explanation:
The budgeted production of the units for the month of July is computed as:
Budgeted production units for July = July units + 25% of August units - Ending inventory of June
where
July units is 5,000 units
August units is 5,700
So, 25% will be:
= 5,700 × 25%
= 1,425
Ending inventory of June is 1,250 units
So, putting the units above:
Budgeted production units for July = 5,000 units + 1,425 units - 1,250 units
Budgeted production units for July = 6,425 units - 1,250 units
Budgeted production units for July = 5,175
