What is the planned production for the month


The Linda Corporation is doing budgets for the last quarter of its fiscal year, which ends on December 31.  The company expects to make sales by month are:  

Sept

Oct

Nov

Dec

Jan

$25,000

$26,250

$31,500

$40,950

$16,380

The unit sales price is $0.50.   The company plans to keep ending finished goods inventory equal to 20% of the following month's production.  What is the planned production for the month of November?

a. 79,380  units

b. 59,220 units

c. 66,780 units

d. 63,000 units

e. None of the above

 

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Accounting Basics: What is the planned production for the month
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