Magnolia, Inc has budgeted sales for the first quarter of the next year to be 45,000 units
The inventory on hand at the beginning of quarter is 5,000 units. The desired ending inventory is 3,000 units. Calculate the budgeted production for the first quarter.
A) 3,000 units
B) 43,000 units
C) 40,000 units
D) 48,000 units
B .B)
Calculation of budgeted production units:
(units)
Budgeted sales for the quarter 45,000
Plus: Desired ending inventory 3,000
Less: Beginning inventory 5,000
Budgeted units to be produced 43,000
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