Question

Bulldog, Inc. has budgeted sales for the first quarter of the next year to be 40,000 units. The inventory on hand at the beginning of quarter is 10,000 units. The desired ending inventory is 1000 units. Calculate the budgeted production for the first quarter.

Answer 1

Answer:

31,000 units

Explanation:

The movement in the balance of inventory between the beginning and end of a given period is usually as a result of production and sales.

This may be expressed mathematically as ;

Opening balance + production - cost of goods sold = closing balance

10,000 + units produced - 40,000 = 1,000

Unit produced = 40,000 + 1,000 - 10,000

= 31,000 units