Ask Question
28 January, 12:52

Company expects to sell 1 comma 500 units of finished product in January and 1 comma 750 units in February. The company has 180 units on hand on January 1 and desires to have an ending inventory equal to 80 % of the next month's sales. March sales are expected to be 1 comma 820 units. Prepare Bailey 's production budget for January and February.

+2
Answers (1)
  1. 28 January, 13:12
    0
    2720 units; 1806 units

    Explanation:

    Ending Inventory in February = 80% x 1820 = 1456 units

    Ending Inventory in January = 80% x 1750 = 1400 units

    Budgeted production in January = Budgeted sales in Jan + Ending Inventory in Jan - Begining Inventory in Jan = 1500 + 1400 - 180 = 2720 units

    Budgeted production in February = Budgeted sales in Feb + Ending inventory in Feb - Begining Inventory in Feb = 1750 + 1456 - 1400 = 1806 units
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Company expects to sell 1 comma 500 units of finished product in January and 1 comma 750 units in February. The company has 180 units on ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers