Offenbach & Son has just made its sales forecasts and its marketing department e

Question

Offenbach & Son has just made its sales forecasts and its marketing department estimates that the company will sell 231,000 units during the coming year. In the past, management has maintained inventories of finished goods at approximately one month’s sales. The inventory at the start of the budget period is 15,500 units. Sales occur evenly throughout the year.

Required:

Estimate the production level required for the coming year to meet these objectives. (Do not round intermediate calculations.)

Required production in units ?

Explanation / Answer

Answer:-

Explanation:- The production level required for the coming year to meet these objectives is 234750 units.

Offenbach & son Production Budget for coming year Particluars Units Estimated sales 231000 Add:- Desired ending inventory of finished goods 231000 units/12 months 19250 Total units required 250250 Less:- Beginning inventory of finished goods 15500 Required production in units 234750

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