Vidyalelo
Commerce · Q588

Costing

Graduate and Post Graduate · Commerce · question 588

Q588

If budget sales units are 2000, an ending inventory is 3000 units and beginning inventory is 1000, then budget production would be

A.
6000 units
B.
4000 units
Answer
C.
no units
D.
8000 units

Answer: Option B

Solution

Answer: Option B
Solution:
Budget production = Budget sales + Ending inventory - Beginning inventory
= 2000 + 3000 - 1000 = 4000 units.