CA Inter P4 · Chapter 14 · Question 2 of 7
Budgeted sales for the quarter are 24,000 units. Opening stock of finished goods is 3,000 units and the desired closing stock is 4,500 units. Budgeted production is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 25,500 units
Explanation
Budgeted production = budgeted sales + desired closing stock - opening stock = 24,000 + 4,500 - 3,000 = 25,500 units.
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