Vidyalelo
Commerce · Q568

Costing

Graduate and Post Graduate · Commerce · question 568

Q568

If budget sales units are 5000, ending inventory is 4000 units and beginning inventory is 1000, then budget production will be

A.
4000 units
B.
5000 units
C.
8000 units
Answer
D.
10000 units

Answer: Option C

Solution

Answer: Option C
Solution:
Budget production = Budget sales + Ending inventory - Beginning inventory
= 5000 + 4000 - 1000 = 8000 units.