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The Production Budget The management at Royal Company wants ending inventory to be equal to...

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Accounting

The Production Budget

The management at Royal Company wants ending inventory to be equal to 20% of the following months budgeted sales in units. On March 31st, 4,000 units were on hand. Lets prepare the production budget.

Month

April

May

June

Quarter 2

July

August

Budgeted unit sales

Add desired units of ending inventory

Total needs

Less units of beginning inventory

Required production in units

Answer & Explanation Solved by verified expert
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