Question

Antique Brass Company has budgeted sales volume of 127 comma 000 units and budgeted production of 110 comma 000 ​units, while 30 comma 000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods​ inventory?

Answer 1

Answer:

13,000 units

Explanation:

The excess of budgeted sales over budgeted production = 127,000 - 110,000 = 17,000 units. In other words, this is the number of units that the company will be in short of.

The company has 30,000 units in beginning inventory, thus the amount of ending finished goods inventory will be = 30,000 - 17,000 = 13,000 units