If the expected sales volume for the current period is 25,000 units, the desired ending inventory is 700 units, and the beginning inventory is 450 units, the number of units set forth in the production budget, representing total production for the current period, is:
A) 25,250 units.
B) 21,500 units.
C) 22,300 units.
D) 22,800 units.

Question

Quizplus · Accepted Answer

To calculate the total production for the current period, use the formula: Expected sales volume + Desired ending inventory - Beginning inventory. Plugging in the numbers: 25,000 + 700 - 450 = 25,250 units.

If the Expected Sales Volume for the Current Period Is