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krok68 [10]
3 years ago
11

Production Budget Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,0

00 units, and the desired January 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. Pasadena Candle Inc. Production Budget For the Month Ending January 31 Total units available Total units to be produced in January
Business
1 answer:
sergij07 [2.7K]3 years ago
7 0

Answer and Explanation:

The preparation of the production budget is presented below:

Projected sales units 800,000 candles

Add: Desired ending inventory, Dec 31 20,000 units  

Total units available 820,000 units  

Less: Estimated beginning inventory,Jan 1 -35,000  units

Total units to be produced 785,000  units

We simply applied the below formula i.e

= Sales units + ending inventory units - beginning inventory units

By applying this formula we can get the Total units to be produced in January month

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<u />

<u>Definition of terms</u>

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