Question

​Bulldog, Inc. has budgeted sales for the first quarter of the next year to be 35,000 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. 2,000 units
B. 42,000 units
C. 32,000 units
D. 30,000 units .

Answer 1

Answer:

     BUDGETED PRODUCTION

                                             Units

Budgeted sales                   35,000

Add: Closing inventory       3,000

                                            38,000

Less: Beginning inventory  5,000

Production budget             33,000

The options are incorrect. The correct answer is 33,000 units.

Explanation:

Production budget is budgeted sales plus closing inventory minus beginning inventory.