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

ID: 2444298 • Letter: I

Question

If the expected sales volume for the current period is 7,000units, the desired ending inventory is 400 units, and the beginninginventory is 300 units, the number of units set forth in theproduction budget, representing total production for the currentperiod, is:
a. 6,900 b. 7,000 c. 7,200 d. 7,100 If the expected sales volume for the current period is 7,000units, the desired ending inventory is 400 units, and the beginninginventory is 300 units, the number of units set forth in theproduction budget, representing total production for the currentperiod, is:
a. 6,900 b. 7,000 c. 7,200 d. 7,100

Explanation / Answer

Answer D. 7,100 Total production = Expected sales + desired ending inventory-beginning inventory                         = 7,000 + 400 -300