Pasadena Candle Inc. projected sales of 800,000 candles for the year. The estimated January 1 inventory is 35,000 units, and the desired December 31 inventory is 20,000 units. Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Question

Business

Sariah Nichols

17 May, 07:10

Pasadena Candle Inc. projected sales of 800,000 candles for the year. The estimated January 1 inventory is 35,000 units, and the desired December 31 inventory is 20,000 units. Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

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Micah Thornton · Answer 1

Total units to be produced = 785000

Explanation:

production budget report in units for Pasadena Candle Inc is as follows:

using the data as per given in the question:

Expected units to be sold 800000

Desired ending inventory, Dec 31 20000

Total units available 820000

Estimated beginning inventory, Jan 1 - 35000

Total units to be produced 785000

Note: Desired ending inventory is the sum total of expected units that hev been sold and desired ending inventory at the year end.

Note: The begining inventory is to be deducted from the total units available.