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the production budget shows expected unit sales of 37000. beginning finished goods units are 3200. required production units are 38600. what are the desired ending finished goods units

Sagot :

3200+38600 = 41800 - 37000 = 3000 is the the desired ending finished goods units

The cost of the completed goods inventory at the conclusion of each budget period is determined by the ending finished goods inventory budget. The unit quantity of finished goods at the end of each budget period is also included, although the production budget is the true source of that data.

The company places a lot of importance on the ending finished goods inventory budget because it can calculate the value of each unit produced based on the cost of raw materials, direct labor, and overhead.

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