If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 units on hand as of the beginning of the year, the budgeted volume of production for the year is 198,000 units.

a) true

b) false

Question

Business

Mariam Lowe

18 March, 12:50

If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 units on hand as of the beginning of the year, the budgeted volume of production for the year is 198,000 units.

a) true

b) false

+5

Answers (1)

Know the Answer?

Clarissa Swanson · Answer 1

False

Explanation:

As we know that the Budgeted Production units can be calculated as under:

Budgeted Production Units = Sales Unit + Closing Units - Opening

Budgeted Production Units = 200,000 + 24,000 - 22,000

Budgeted Production Units = 202,000 Units

So saying that the budgeted production units for the year were 198,000 units is totally incorrect.

If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 units on hand as of the beginning of the year, the budgeted volume of production for the year is 198,000 units.a) trueb) false

If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 units on hand as of the beginning of the year, the budgeted volume of production for the year is 198,000 units.

a) true

b) false