The production budget shows expected unit sales of 32,000. Beginning finished goods units are 3,600. Required production units are 33,600. What are the desired ending finished goods units?

To find the desired ending finished goods units, we use the formula for determining the required production units:

\[
\text{Required Production Units} = (\text{Expected Unit Sales} + \text{Desired Ending Finished Goods Units}) - \text{Beginning Finished Goods Units}
\]

We are given:
- Expected unit sales = 32,000
- Beginning finished goods units = 3,600
- Required production units = 33,600

Now, solving for the desired ending finished goods units:

\[
33,600 = (32,000 + \text{Desired Ending Finished Goods Units}) - 3,600
\]

First, add 3,600 to both sides:

\[
33,600 + 3,600 = 32,000 + \text{Desired Ending Finished Goods Units}
\]

\[
37,200 = 32,000 + \text{Desired Ending Finished Goods Units}
\]

Next, subtract 32,000 from both sides:

\[
37,200 - 32,000 = \text{Desired Ending Finished Goods Units}
\]

\[
5,200 = \text{Desired Ending Finished Goods Units}
\]

So, the desired ending finished goods units are **5,200 units**.

Would you like more details on this process, or do you have any questions?

Here are 5 related questions to explore further:
1. How do beginning inventory levels affect production schedules?
2. What would happen if the ending finished goods units were overestimated?
3. How do expected sales impact budgeting in production planning?
4. What is the role of a safety stock in calculating ending finished goods?
5. How could fluctuations in demand influence the production budget?

**Tip:** When planning production, it's always useful to factor in a buffer for potential changes in demand to avoid stockouts.

Find out how to calculate desired ending finished goods units based on a production budget. Using the formula for required production units, this problem illustrates key concepts in production planning and algebra. Suitable for Grades 9-12.

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