Following information estimated for the year 2020-21: Normal loss in production will be 5% of input. Sales (in units) as per Sales Budget 38,350 units. Closing stock will be 6600 units which has been estimated 10% more t

CS Executive · Corporate and Management Accounting · PYQS · December 2019
Following information estimated for the year 2020-21: Normal loss in production will be 5% of input. Sales (in units) as per Sales Budget 38,350 units. Closing stock will be 6600 units which has been estimated 10% more than previous year's quantity. The input for required production will be :
(A) 39,737 units
(B) 41,000 units
(C) 40,898 units
(D) 39,638 units

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Production Budget

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