Vidyalelo
Commerce · Q601

Costing

Graduate and Post Graduate · Commerce · question 601

Q601

If budget sales units are 8000, ending inventory is 2000 units and beginning inventory is 3000, then budget production would be

A.
11000 units
B.
13000 units
C.
10000 units
D.
7000 units
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Budget production = Budget sales + Ending inventory - Beginning inventory
= 8000 + 2000 - 3000 = 7000 units.