Jannusch Corporation makes one product. Budgeted unit sales for July, August, September, and October are 10,000, 11,600, 13,300, and 12,700 units, respectively. The ending finished goods inventory should equal 20% of the following month's sales. The budgeted required production for August is closest to:(a) 11,600 units


(b) 11,940 units


(c) 14,260 units


(d) 16,580 units


Answer:

Option A is Correct one.

The budgeted required production for August is 11,600 units.

Explanation:

Beginning inventory=(20%*11600)=2320

Add:production(balance)(11600+2660-2320)=11940 units(B).

Less:ending inventory(20%*13300)=(2660)

Sales=11600 units


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