If the expected sales volume for the current period is 7,000units, the desired e

Question

If the expected sales volume for the current period is 7,000units, the desired ending inventory is 200 units, and the beginninginventory is 300 units, the number of units set forth in theproduction budget, representing total production for the currentperiod, is:
a. 7,000 b. 6,900 c. 7,100 d. 7,200 If the expected sales volume for the current period is 7,000units, the desired ending inventory is 200 units, and the beginninginventory is 300 units, the number of units set forth in theproduction budget, representing total production for the currentperiod, is:
a. 7,000 b. 6,900 c. 7,100 d. 7,200

Explanation / Answer

B. 6,900 Production budget = Expected sales + desired ending - beginninginventory                            = 7,000 + 200 -300                            = 6,900

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