Question

Blossom Company has provided you with the following sales data. September October November December Budgeted unit sales 20000 30000 50000 40000 The company requires that 5% of the next monthâs sales be on hand at the end of each month. Budgeted production for October is:_____________

Answer 1

Answer:

Production= 31,000

Explanation:

Giving the following information:

Sales:

October= 30,000

November= 50,000

The company requires that 5% of the next month's sales be on hand at the end of each month.

To calculate the production for October, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 30,000 + (50,000*0.05) - (30,000*0.05)

Production= 31,000