Detmer Enterprises has budgeted sales for the next four mont

 Detmer Enterprises has budgeted sales for the next four months as follows:                    Budgeted Sales in Units             January                7,400 units                               February               4,600 units                               March                  5,300 units                               April                  3,900 units  Past experience has shown that the ending inventory for each month should be equal to 25% of the next month\'s expected sales in units. The company is currently preparing a production budget.  Calculate the total number of units budgeted to be produced in February.

Solution

Beginning inventory(0.25*4600) 1150 units Add:production(balance)(4600+1325-1150) 4775 units. Less:Ending inventory(0.25*5300) (1325units) Sales 4600 units
 Detmer Enterprises has budgeted sales for the next four months as follows: Budgeted Sales in Units January 7,400 units February 4,600 units March 5,300 units A

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