Question

If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the number of units set forth in the production budget, representing total production for the current period, is
a. 10,600
b. 66,000
c. 6,800
d. 8,200

Answer 1

Answer:

Number of units set forth in production budget is 8200

Explanation:

We have given the expected sale volume for the current period , that is unit sold = 8000

Desired ending inventory = 1400 units

Regaining inventory = 1200

We have to find the number of units set forth in production budget

We know that production budget is given by

Production budget = unit sold + ending inventory - beginning inventory

So production budget = 8000 +1400 - 1200 = 8200

So number of units set forth in production budget is 8200