Question

Bengal Co. provides the following unit sales forecast for the next three months: July August September...

Bengal Co. provides the following unit sales forecast for the next three months:

July August September
Sales units 5,000 5,700 5,560


The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for July are:

Group of answer choices

6,250 units.

3,750 units.

6,425 units.

2,500 units.

5,175 units.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Computation of budgeted production units for July can be done using the following formula:
Budgeted finished goods inventory for June + Budgeted production for July - Budgeted units to be sold in July = Budgeted finished goods inventory for July
=> 1,250 units + Budgeted production for July - 5,000 units = 1,425 units
=> Budgeted production for July = 5,175 units
Hence, the last option is the correct answer.
Note: Budgeted finished goods inventory for July = 25% of August budgeted sales
=> Budgeted finished goods inventory for July = 25% of 5,700 units = 1,425 units
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
1. Ruiz Co. provides the following sales forecast for the next four months. April May June...
1. Ruiz Co. provides the following sales forecast for the next four months. April May June July Sales (units) 640 720 670 760 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 128 units. Prepare a production budget for the months of April, May, and June. RUIZ CO. Production Budget For April, May, and June April May June Next month's budgeted sales...
Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for...
Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four months:     April May June July Sales (units) 610 690 640 730 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 122 units. Assume July's budgeted production is 640 units. In addition, each finished unit requires five pounds (lbs.) of raw materials and...
Recard Corporation makes one product. Budgeted unit sales for July, August, and September are 8,000, 12,000,...
Recard Corporation makes one product. Budgeted unit sales for July, August, and September are 8,000, 12,000, and 15,000 units, respectively. Recard’s desired ending finished goods inventory is 20% of the following month's sales and inventory on July 1st is 2,000 units. The budgeted production for August is closest to: a. 11,400 units b. 15,000 units c. 12,600 units d. 12,000 units
Osage, Inc., has actual sales for May and June and forecast sales for July, August, September,...
Osage, Inc., has actual sales for May and June and forecast sales for July, August, September, and October as follows: Actual: May 5,930 units June 6,240 units Forecast: July 5,910 units August 6,890 units September 5,630 units October 5,210 units Required: a. The firm’s policy is to have finished goods inventory on hand at the end of the month that is equal to 70% of the next month’s sales. It is currently estimated that there will be 4,137 units on...
Ramos Co. provides the following sales forecast and production budget for the next four months: April...
Ramos Co. provides the following sales forecast and production budget for the next four months: April May June July Sales (units) 670 750 700 770 Budgeted production (units) 610 740 710 710 The company plans for finished goods inventory of 290 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 20% of next month’s production needs. Beginning direct...
Ramos Co. provides the following sales forecast and production budget for the next four months. April...
Ramos Co. provides the following sales forecast and production budget for the next four months. April May June July Sales (units) 530 610 560 630 Budgeted production (units) 470 600 570 570 The company plans for finished goods inventory of 150 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next month’s production needs. Beginning direct...
Required information Use the following information for the Exercises below. Ruiz Co. provides the following sales...
Required information Use the following information for the Exercises below. Ruiz Co. provides the following sales forecast for the next four months:     April May June July Sales (units) 650 730 680 770 The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 130 units. Assume July's budgeted production is 680 units. In addition, each finished unit requires six pounds (lbs.) of raw...
Sander Co. has budgeted sales in units for the next four months as follows: July                        7,000 units...
Sander Co. has budgeted sales in units for the next four months as follows: July                        7,000 units August                   7,200 units September             8,000 units October                 7,900 units Past experience has shown that the ending inventory for each month should be equal to 15% of the next month's sales in units.  The company needs to prepare a production budget for the next four months. The beginning inventory for September should be: a. 1,080 units b. 1,200 units c. 1,185 units d. 1,170 units
ABC Company’s budgeted sales for June, July, and August are 13,800, 17,800, and 15,400 units, respectively....
ABC Company’s budgeted sales for June, July, and August are 13,800, 17,800, and 15,400 units, respectively. ABC requires 40% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 5,520 units. Required: Calculate the number of units to be produced in June and July.
has budgeted sales and production over the next quarter as follows: July August September Sales in...
has budgeted sales and production over the next quarter as follows: July August September Sales in units 46,000 58,000 ? Production in units 46,600 58,300 62,650 The company has 5,200 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 77,500 units. Budgeted sales for September would be (in units): Multiple Choice 68,450 61,000 70,000 70,400
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT