operating budget question

manbo

http://osbornebooks.rtahosting.co.uk/osborne69/q9s.asp

Please refer to the link above. Can anyone explain me how the closing inventory of finished good is calculated? The amount is 8400 and i do not understand why.

Thanks!

PeterC

Total cost of production £184,800
Production Budget 22,000 units, so £8.40 per unit (184,800/22,000)

Closing inventory of finished goods = 1,000 units, so £8,400 (1,000 x £8.40)

manbo

thanks!!