In a production budget, if the number of units expected to be sold during the year is 8,000, the number of units desired in ending inventory is 470 units, and the number of units in beginning inventory is 510 units, the total production for the year is:
A) 7,160.
B) 6,660.
C) 7,810.
D) 7,960.

Question

Quizplus · Accepted Answer

Total units needed for sales and ending inventory = 8,000 + 470 = 8,470
Units available from beginning inventory = 510
Total units to be produced = 8,470 - 510 = 7,960.

Therefore, the answer is D) 7,960.

In a Production Budget, If the Number of Units Expected