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Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 10,000 10,700 6,100 The company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales. Finished goods inventory on June 30 is 2,000 units. The budgeted production units for August are:

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Answer:

9780 units

Explanation:

Calculation to determine what The budgeted production units for August are:

Using this formula

Budgeted production in August= Budgeted sales + Desired ending inventory - Beginning inventory

Let plug in the formula

Budgeted production in August= $10,700 + ($6,100*20%) - ($10,700*20%)

Budgeted production in August=$10,700 + $1,220- $2,140

Budgeted production in August= 9780 units

Therefore The budgeted production units for August are:9780 units

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