Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 6 - Master Budget and Responsibility Accounting - Assignment Material - Exercises - Page 231: 6-17

Answer

Trays Budgeted for Production = 208,000 + 27,000 - 18,000 = 217,000 trays

Work Step by Step

To calculate the number of trays budgeted for production in 2015, use the following formula: Trays Budgeted for Production = Expected Sales + Target Ending Inventory - Beginning Inventory Trays Budgeted for Production = 208,000 (expected sales) + 27,000 (target ending inventory) - 18,000 (beginning inventory) So, the number of trays budgeted for production in 2015 is 217,000 trays.
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