Question MA2.39: A company produces a single product B. The company budgets t...
A company produces a single product B. The company budgets to sell 2,200 units of product B during period 4 and sales are budgeted to be 10 per cent higher in period 5. It is company policy to hold inventories of finished goods equal to 20 per cent of the following period’s sales. The budgeted production of product B for period 4 is \boxed{ \ \ \ \ \ \ \ \ \ \ \ }units
The budgeted production of product B for period 4 is 2,244 units.
Units
Period 4 sales 2,200
Period 4 closing inventory (2,200 × 1.10 × 0.20) 484
Period 4 opening inventory (2,200 × 0.20) (440)
Period 4 budgeted production 2,244