Calculator If the expected sales volume for the current period is 7,400 units, the desired ending inventory is 268 units, and the beginning inventory is 337 units, the number of units set forth in the production budget, representing total production for the current period, is a. 7,063 b. 7,668 c. 7,331 d. 7,400

Question

Luna Khan

Business

19 July, 10:36

Calculator If the expected sales volume for the current period is 7,400 units, the desired ending inventory is 268 units, and the beginning inventory is 337 units, the number of units set forth in the production budget, representing total production for the current period, is a. 7,063 b. 7,668 c. 7,331 d. 7,400

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Bradley Odom · Answer 1

c. 7,331

Explanation:

The movement or change in inventory balance at the start of a period and at the end of the period is as a result of 2 factor namely; sales and production.

While sales will result in a decrease in the account balance, production will cause an increase. This may be expressed mathematically as

Opening balance + production - sales = closing balance

Let the units produced be H

337 + H - 7400 = 268

H = 7400 + 268 - 337

= 7,331