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The Tough Jeans Company produces two different styles of jeans, Working Life and Social Life. The company sales budget estimates that 400,000 of the Working Life jeans and 250,000 of the Social Life jeans will be sold during the year. The company begins with 9,000 pairs of Working Life and 18,000 pairs of Social Life. The company desires ending inventory of 7,500 of Working Life and 10,000 Social Life. Prepare a production budget for the year.
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Expert Answer
Tough Jeans Company
Production budget
| Working Life | Social Life | |
| Expected units to be sold | 400,000 | 250,000 |
| Add: Desired ending inventory | 7,500 | 10,000 |
| Total | 407,500 | 260,000 |
| Less: Estimated beginning inventory | 9,000 | 18,000 |
| Total units to be produced | 398,500 | 242,000 |
