Budgeted sales of X for March are 18,000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for March are budgeted to be 15,000 units and closin

CS Executive · Cost and Management Accounting · PYQS · December 2019
Budgeted sales of X for March are 18,000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for March are budgeted to be 15,000 units and closing inventories will be 11,400 units. All inventories of finished goods must have successfully passed the quality control check. The production budget for X for March, in units is:
(A) 12,960
(B) 14,400
(C) 15,840
(D) 16,000

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Budgetary Control

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