If the expected sales volume for the current period is 9,000 units, the desired ending inventory is 200 units, and the beginning inventory is 300 units, the number of units set forth in the production budget, representing total production for the current period, is:
A) 9,000
B) 8,900
C) 8,700
D) 9,100

Question

Quizplus · Accepted Answer

The production budget should provide for the production of enough units to cover both sales and ending inventory requirements. The formula for calculating the number of units to be produced is:Units to be produced = Expected sales volume + Desired ending inventory - Beginning inventoryPlugging in the given values, we get:Units to be produced = 9,000 + 200 - 300 = 8,900 units

If the Expected Sales Volume for the Current Period Is