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

Question

Quizplus · Accepted Answer

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

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

Total production = 22,000 + 800 - 500

Total production = 22,300 units

Therefore, the correct answer is C) 22,300 units.

If the Expected Sales Volume for the Current Period Is