Question

If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is

Answer 1

7,000 units

Step-by-step explanation:

Calculation for the number of units set forth in the production budget, representing total production for the current period

Using this formula

Number of units =Sales volume for the current period +Desired ending inventory -Beginning inventory

Let plug in the formula

Number of units=7,000 units +400 units-400 units

Number of units=7,000 units

Therefore the number of units set forth in the production budget, representing total production for the current period is 7,000 units