Broughton Corp.has prepared a production budget for February.Management has determined that the total required production for February is 360 000 units when an ending inventory of 40 000 units is desired and the beginning inventory is 10 000 units.
Based on the above information,what were February's budgeted sales?
A) 410 000 units
B) 360 000 units
C) 330 000 units
D) 390 000 units

Question

Quizplus · Accepted Answer

To find February's budgeted sales, we use the formula: Required production = Beginning inventory + Budgeted sales - Ending inventory. Plugging in the numbers: 360,000 = 10,000 + Budgeted sales - 40,000. Solving for Budgeted sales gives us 390,000 - 10,000 = 380,000 units, which is not an option provided, indicating a mistake in calculation. Correctly, it should be: Budgeted sales = Required production + Ending inventory - Beginning inventory = 360,000 + 40,000 - 10,000 = 390,000 units, which means there was an error in my initial explanation. The correct calculation leads to budgeted sales that are not directly reflected in the provided options, suggesting a need to reevaluate the initial explanation or the interpretation of the options. Given the options and the correct approach to calculate, if we correctly follow the formula: Required production = Budgeted sales - Beginning inventory + Ending inventory, and we are solving for Budgeted sales, it should be: Budgeted sales = Required production - Ending inventory + Beginning inventory. However, this reflects a misunderstanding of the formula application. The correct approach to find the budgeted sales based on the given information was misunderstood in the explanation. The accurate calculation should directly relate to the data provided and the formula for determining budgeted sales based on required production, beginning, and ending inventory. Given the mistake in calculation and explanation, the correct answer should be deduced from the correct formula: Budgeted sales = Required production + Beginning inventory - Ending inventory, which was not properly applied in the initial response.