Question

Bulldog, Inc. has budgeted sales for the first quarter of the next year to be 30 comma 000 units. The inventory on hand at the beginning of quarter is 5 comma 000 units. The desired ending inventory is 5 comma 000 units. Calculate the budgeted production for the first quarter. A. 5 comma 000 units B. 35 comma 000 units C. 30 comma 000 units D. 25 comma 000 units

Answer 1

Answer:

30,000 units

Explanation:

Budgeted sales is 30,000 units

Beginning inventory = 5000 units

Ending inventory = 5000 units

In order to meet the sales of 30,000 units, the sum of budgeted production and beginning inventory must be at least 30,000 units. However, since the company desires to have 5000 units in ending inventory, this sum must be raised to 35,000 units, which means the production needs to 30,000 units

--> Budgeted production = 30,000 + 5000 - 5000

                                         = 30,000 units