If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the number of units set forth in the production budget, representing total production for the current period, is:
A) 10,600
B) 8,200
C) 66,000
D) 6,800

Question

Quizplus · Accepted Answer

The formula for total production for the current period is:
Expected sales + Desired ending inventory - Beginning inventory = Total production
Plugging in the numbers:
8,000 + 1,400 - 1,200 = 8,200 units (Option B)

If the Expected Sales Volume for the Current Period Is