Question

The total estimated sales for the coming year is 250,000 units. The estimated inventory at the...

The total estimated sales for the coming year is 250,000 units. The estimated inventory at the be- ginning of the year is 22,500 units, and the desired inventory at the end of the year is 30,000 units. The total production indicated in the production budget is:

A. 242,500 units B. 257,500 units C. 280,000 units D. 302,500 unit

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Answer #1

Opening inventory+Production =Sales+closing inventory

22500+Production=250000+30000

Production =250000+30000-22500

Production =257500 units

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