Question

If the expected sales volume for the current period is 25,000 units, the desired ending inventory is 1,000 units, and the beginning inventory is 500 units, the number of units set forth in the production budget, representing total production for the current period is:

Answer 1

25,500 units

Step-by-step explanation:

Sales units = Opening stock + Production - Closing stock

So, we input the figure with aid of the above formulae

25,000 units = 500 units + Production units - 1,000 units

Production units = 25,000 units - 500 units + 1,000 units

Production units = 25,500 units.

So, the number of units set forth in the production budget, representing total production for the current period is 25,500 units.