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11 January, 21:30

The number of units required for production is equal to:

budgeted sales plus units in the ending inventory minus the units in the beginning inventory.

budgeted sales minus the units in the beginning inventory.

budgeted sales.

budgeted sales plus units in the beginning inventory minus the units in the ending inventory.

budgeted sales plus the units in the ending inventory.

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Answers (1)
  1. 11 January, 22:17
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    The number of units required for production is equal to budgeted sales plus units in the ending inventory minus the units in the beginning inventory.

    Explanation:

    The computation of how much unit is produces in a particular year is derived by given formula:

    Cost of goods sold = Opening inventory + Purchase - Ending inventory

    where,

    Cost of good sold is budgeted sales

    Opening inventory is that inventory which is introduced in a starting year.

    Purchase means how much items or units is required to achieve the production target.

    And, Ending Inventory is that inventory which is left in the end of the year.

    Thus, The number of units required for production is equal to budgeted sales plus units in the ending inventory minus the units in the beginning inventory.
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