Question
Detmer Enterprises has budgeted sales for the next five months as follows: January 3,800 units February 6,800 units March 5,400 units April 7,200 units May
Detmer Enterprises has budgeted sales for the next five months as follows: January 3,800 units
February 6,800 units
March 5,400 units
April 7,200 units
May 4,600 units
Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on December 31, contained 400 units, which was in excess of the desired level of inventory. The company needs to prepare a Production Budget for the first quarter of the year.
The total number of units needed (i.e., unit sales plus desired ending inventory) in March is:
6,120 units
6,080 units
5,400 units
5,940 units
The total number of units to be produced in January is:
4,480 units
3,800 units
4,080 units
3,500 units
The desired ending inventory for April is:
460 units
540 units
720 units
680 units
Detmer Enterprises has budgeted sales for the next five months as follows: January February March 3,800 units 6,800 units 5,400 unit:s 7.200 units 4,600 units ri May Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on December 31, contained 400 units, which was in excess of the desired level of inventory. The company needs to prepare a Production Budget for the first quarter of the year. 1. The total number of units needed (i.e., unit sales plus desired ending inventory) in March is: a. 6,120 units b. 6,080 units c. 5,400 units d. 5,940 units 2. The total number of units to be produced in January is: a. 4,480 units b. 3,800 units c. 4,080 units d. 3,500 units 3. The desired ending inventory for April is: a. 460 units b. 540 units c. 720 units d. 680 units
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