Learning Outcome 9 Kickland Inc has the following budgeted s

(Learning Outcome 9): Kickland Inc. has the following budgeted sales for the next quarter, Month:1 Units11,000 12,000 13,000 Inventory of finished goods on hand at the beginning of the quarter is 6,000 units. The company desires to maintain ending inventory equal to beginning inventory plus 2,500 units every month. Calculate the total quantity to be produced during the quarter. You must show your calculations to receive full credit for this problem.

Solution

ANSWER:

Particulars

Month-1

Month-2

Month-3

Beginning Inventory (A)

6000

8500

11000

Budgeted Sales (B)

11000

12000

13000

Ending inventory (C)

8500

11000

13500

Units Produced (B+C-A)

13500

14500

15500

CALCULATIONS:

ENDING INVENTORY

BEGINING ENVENTORY

UNITS PRODUCED

Particulars	Month-1	Month-2	Month-3
Beginning Inventory (A)	6000	8500	11000
Budgeted Sales (B)	11000	12000	13000
Ending inventory (C)	8500	11000	13500
Units Produced (B+C-A)	13500	14500	15500