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    Total Number of Units Should be Produced

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    Question 10:

    Harden, Inc., has budgeted sales in units for the next five months as follows:

    June 7,000 units
    July 5,200 units
    August 6,300 units
    September 6,700 units
    October 4,700 units

    Past experience has shown that the ending inventory for each month should be equal to 14% of the next month's sales in units. The inventory on May 31 contained 1,250 units. The company needs to prepare a production budget for the next five months.

    The total number of units produced in July should be:

    5,354 units

    5,200 units

    4,924 units

    5,100 units

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    Solution Preview

    Units to be produced = Sales + Ending Inventory - Beginning ...

    Solution Summary

    The solution explains how to calculate the total number of units should be produced.