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 As per the company policy, closing stock should be equal to 20% of the coming month's sales fo

CS Executive · Cost and Management Accounting · PYQS · June 2018
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 As per the company policy, closing stock should be equal to 20% of the coming month's sales forecast. How many units should be produced in June:
(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: Cost and Management Accounting

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