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Bengal Co. provides the following sales forecast for the next three months: JulyAugustSeptember Sales units 8,500 9,200 5,950 The company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales. Finished goods inventory on June 30 is 1,700 units. The budgeted production units for August are:

Answer :

facundobuzzetti

Answer:

Production= 8,550

Explanation:

Giving the following information:

Sales units 8,500 9,200 5,950

Desired ending inventory=  20% of the next month's sales.

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

Production= sales + desired ending inventory - beginning inventory

Production= 9,200 + (5,950*0.2) - (9,200*0.2)

Production= 9,200 + 1,190 - 1,840

Production= 8,550

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