Question

A company budgeted unit sales of 395,000 units for January, 2020 and 436,000 units for February...

A company budgeted unit sales of 395,000 units for January, 2020 and 436,000 units for February 2020. The company has a policy of having an inventory of units on hand at the end of each month equal to 26% of next month's budgeted unit sales. If there were135,200 units of inventory on hand on December 31, 2019, how many units should be produced in January, 2020 in order for the company to meet its goals?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

We will use the below equation to find the units to be produced in January:

Units to be produced in January 2020 = Units required for sales in January 2020 + Units required in ending inventory in January 2020 - Units in beginning inventory

Given: Units required for sales in January = 395000

Beginning inventory = Ending inventory for December = 135200

Units needed in ending inventory in January = 26% * 436000 = 113360

Now, putting these values in the above equation, we get,

Units to be produced in January 2020 = 395000 + 113360 - 135200

Units to be produced in January 2020 = 373160

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company budgeted unit sales of 204,000 units for January, 2017 and 240,000 units for February...
A company budgeted unit sales of 204,000 units for January, 2017 and 240,000 units for February 2017. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 61,200 units of inventory on hand on December 31, 2016, how many units should be produced in January, 2017 in order for the company to meet its goals?
A company budgeted unit sales of 124000 units for January, 2017 and 140000 units for February...
A company budgeted unit sales of 124000 units for January, 2017 and 140000 units for February 2017. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 37200 units of inventory on hand on December 31, 2016, how many units should be produced in January, 2017 in order for the company to meet its goals? 128800 units 166000 units...
Adham Company has budgeted to produce 20,000 units in January and 30,000 units in February. Two...
Adham Company has budgeted to produce 20,000 units in January and 30,000 units in February. Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each month equal to 20% of the next month's production needs for material A. A total of 8,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for January...
The following are budgeted data: January February March Sales in units 16,900 23,800 19,900 Production in...
The following are budgeted data: January February March Sales in units 16,900 23,800 19,900 Production in units 19,900 20,900 20,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:
The following are budgeted data: January February March Sales in units 16,800 23,600 19,800 Production in...
The following are budgeted data: January February March Sales in units 16,800 23,600 19,800 Production in units 19,800 20,800 19,700 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:
Nearing Company has provided the following information: Budgeted unit sales: January 420,000 February 400,000 March 430,000...
Nearing Company has provided the following information: Budgeted unit sales: January 420,000 February 400,000 March 430,000 April 450,000 Nearing Company plans on maintaining ending inventory levels equal to 40% of the following month's unit sales. Fill in the amounts for the quarter ending March 31, 2018: You must enter your answers in the following format: x,xxx 1) Budgeted unit sales 2) Desired units of ending finished goods inventory 3) Total needs 4) Units of beginning finished goods inventory 5) Required...
January February March Budgeted production (in units) 70,500 ? 82,500 Budgeted raw materials purchases (in pounds)...
January February March Budgeted production (in units) 70,500 ? 82,500 Budgeted raw materials purchases (in pounds) 195,561 159,100 161,300 Three pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 21% of the following month's production needs. The company is expected to have 44,415 pounds of raw materials on hand on January 1. Budgeted production for February should be: Multiple Choice 45,200 units...
3. Troy Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales...
3. Troy Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales October 40,000 November 70,000 December 50,000 January 60,000 There were 14,000 units of finished goods in inventory at the beginning of October. Plans are to have an inventory of finished product equal to 25 percent of the unit sales for the next month. Five pounds of a single raw material are required for each unit produced. Each pound of material costs $10. Plans are...
The Ace Battery Company has forecast its sales in units as follows:   January 1,500 May 2,050...
The Ace Battery Company has forecast its sales in units as follows:   January 1,500 May 2,050   February 1,350 June 2,200   March 1,300 July 1,900   April 1,800 Ace always keeps an ending inventory equal to 130 percent of the next month's expected sales. The ending inventory for December (January's beginning inventory) is 1,950 units, which is consistent with this policy. Materials cost $10 per unit and are paid for in the month after production. Labour cost is $3 per unit and...
Q1    The following are budgeted data: January February March Sales in units 16,900 23,800 19,900...
Q1    The following are budgeted data: January February March Sales in units 16,900 23,800 19,900 Production in units 19,900 20,900 20,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be: Garrison 16e Rechecks 2017-10-03 Multiple Choice 21,125 pounds 20,575 pounds 18,225 pounds 20,675 pound Q2    The manufacturing...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT