Question

Pasadena Candle Inc. projected sales of 63,000 candles for January. The estimated January 1 inventory is 3,200 units, and the desired January 31 inventory is 6,000 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

Answer 1

Answer and Explanation:

The Preparation of production budget report in units is shown below:-

                                     Pasadena Candle Inc.

                                Production budget report

                                For the year ended Jan 31

Particulars                       Units

Expected units to be sold 63,000

Add: Desired ending inventory,  Jan 31 6,000

Total units available 69,000

Less: Estimated beginning inventory,  January 1 -4,300

Total units to be produced 64,700

Therefore we simply deduct the Estimated beginning inventory, Jan 1 from total units available to reach the total units to be produced