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A business is preparing its production budget, materials usage and materials purchases budget for the forthcoming period. The following information is known: Budgeted sales 2,300

A business is preparing its production budget, materials usage and materials purchases budget for the forthcoming period. The following information is known:

Budgeted sales 2,300 units

Current inventory of finished goods 400 units

Required closing inventory of finished goods 550 units

Each unit of the product uses 6 kg of material X and details of this are as follows:

Current inventory of X 2,000 kg

Required closing inventory of X 2,600 kg

What is the production volume required for the forthcoming period to meet the sales demand?

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