Asked by Andrea Anguiano on Jul 08, 2024
Verified
Cardle Corporation makes one product.Budgeted unit sales are shown below: 
The ending finished goods inventory should equal 30% of the following month's sales.The budgeted required production for February is closest to:
A) 11,630 units
B) 14,210 units
C) 9,050 units
D) 8,600 units
Finished Goods Inventory
The total value of products that are completed and ready for sale but have not yet been sold.
Budgeted Unit Sales
The number of units a company plans or expects to sell over a certain period, as estimated during the budgeting process.
- Achieve comprehension regarding the interplay between sales forecasts, inventory management practices, and the formulation of budgeted production.
Verified Answer
UW
Unique WalkerJul 09, 2024
Final Answer :
C
Explanation :
The budgeted required production for February is computed as follows: 
*March sales of 10,100 units × 30% = 3,030 units
** February sales of 8,600 units × 30%= 2,580 units
*March sales of 10,100 units × 30% = 3,030 units** February sales of 8,600 units × 30%= 2,580 units
Learning Objectives
- Achieve comprehension regarding the interplay between sales forecasts, inventory management practices, and the formulation of budgeted production.
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