If the expected sales volume for the current period is 7,800 units,the desired ending inventory is 500 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)7,300.
B)6,900.
C)7,800.
D)7,900.

Question

Quizplus · Accepted Answer

To determine the total production needed for the current period, we need to add the expected sales volume to the desired ending inventory and subtract the beginning inventory.

Total production = Expected sales + Desired ending inventory - Beginning inventory

Total production = 7,800 + 500 - 400

Total production = 7,900

Therefore, the correct answer is D (7,900 units).

If the Expected Sales Volume for the Current Period Is