ABC Ltd. has forecast its sales for the next three months as follows: May : 12,000 units June : 20,000 units July : 25,000 units Opening stock as on 1st April is expected to be 5,000 units. Closing stock should equal to

CS Executive · Cost and Management Accounting · PYQS · December 2019
ABC Ltd. has forecast its sales for the next three months as follows: May : 12,000 units June : 20,000 units July : 25,000 units Opening stock as on 1st April is expected to be 5,000 units. Closing stock should equal to 20% of the coming month's sales needs. How many units should be produced in June month?
(A) 20,000 units
(B) 11,000 units
(C) 21,000 units
(D) 25,000 units

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Budgetary Control

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