Let’s start practicing with some budget problems. The ABC Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The ABC Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales.
What should the budgeted production be for January?
What should the budgeted prodcution be for February?
What should the budgeted production be for march?
What should the budgeteted production for March 31?
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