Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

Bengal Co. provides the following unit sales forecast for the next three months:
July August September Sales units 5,000 5,700 5,560 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for July are:
Group of answer choices
6,250 units.
3,750 units.
6,425 units.
2,500 units.
5,175 units.

Sagot :

The budgeted production units for July are 5665 units.

Sales units for July = 5,000

Sales units for august = 5,700

Sales units for September = 5,560

Desired ending inventory for august = 25% of sales in September

                                                            = 25% × 5,560

                                                           = 1390 Units

Desired ending inventory for July =  25% of sales in august

                                                      = 25% × 5,700                                                                                                                                        

                                                          = 1425 Units

The Desired ending inventory for July is beginning inventory for august.

Beginning inventory for august = 1425 Units

So,

Budgeted production units for August:

=  Sales units for august + Desired ending inventory for august - Beginning inventory for august

= (5,700 + 1390 - 1425) units

= 5665 units

Inventory refers to all the objects, goods, merchandise, and materials held by means of a business for selling in the marketplace to earn a profit. instance: If a newspaper seller makes use of a automobile to supply newspapers to the customers, best the newspaper may be considered stock. The automobile could be handled as an asset.

Learn more about budgeted here :-

https://brainly.com/question/24940564

#SPJ4

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.