Newman Products is preparing their first quarter production budget. The desired ending inventory of finished goods for the month of January becomes:
A) the required production for the month of January.
B) the budgeted sales for the month of February.
C) the beginning inventory for the month of February.
D) the required production for the month of February.

Question

Quizplus · Accepted Answer

The desired ending inventory of finished goods for a month becomes the beginning inventory for the next month. Therefore, the desired ending inventory for January becomes the beginning inventory for February.

Newman Products Is Preparing Their First Quarter Production Budget