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Ruiz Co. provides the following unit sales forecast for the next three months: January February March Sales units 3,900 5,100 5,900 The company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales. Finished goods inventory on December 31 is 390 units. The budgeted production units for February are:______________.

Respuesta :

Answer:

5,180 units

Explanation:

The computation of the budgeted production units is shown below:

= Sale units + ending inventory units - beginning inventory units

where,  

Sale units is 5,100 units

Ending inventory units = 5,900 units × 10% = 590 units

Beginning inventory units = 5,100 × 10% = 510 units

Now put these units to the above formula  

So, the units would equal to  

= 5,100 units + 590 units - 510 units

= 5,180 units

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