Question

Basile Corporation has budgeted sales of 36,000 units, target ending finished goods inventory of 6,000 units, and beginning finished goods inventory of 1,800 units. How many units should be produced next year

Answer 1

Answer:

40,200 units

Explanation:

Data given in the question

Budgeted sales units = 36,000 units

Ending finished goods inventory units = 6,000 units

Beginning finished goods inventory units = 1,800 units

So by considering the above information, the units produced next year is

= Budgeted sales units + ending finished goods inventory units - beginning finished goods inventory units

= 36,000 units + 6,000 units - 1,800 units

= 40,200 units

Answer 2

An expected sales of company products and services for a budgeted time is called a sales budget. It can be estimated in dollars or units.

The 40,200 units should be produced in next year.

The unit can be estimated by:

Given,

• Budgeted sales (BS) units = 36,000 units

• Target ending finished services (TEFS) units = 6,000 units

• Beginning finished goods (BFG) commodities = 1,800 units

The units to be produced next year will be:

$\begin{aligned} \rm BS + TEFS - BFG &= 36,000 \;\rm units + 6,000 \;\rm units - 1,800 \;\rm units\\\\&= 40,200 \;\rm units\end{aligned}$

Therefore, 40,200 units should be manufactured.

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