-If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is
A)6,700 units
B)7,400 units
C)7,100 units
D)7,000 units

Question

-If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is
A)6,700 units 
B)7,400 units 
C)7,100 units 
D)7,000 units

Quizplus · Accepted Answer

The production budget is calculated as: Expected sales volume + Desired ending inventory - Beginning inventory. Here, it is 7,000 + 400 - 400 = 7,000 units.

-If the Expected Sales Volume for the Current Period Is