Budgeted sales of Product-X for March, 2016 are 25,500 units. At the end of production process, 10% of net production units are scrapped as defective. Opening stock of Product-X for March is budgeted to be 15,000 units a

CS Executive · Cost and Management Accounting · PYQS · December 2016
Budgeted sales of Product-X for March, 2016 are 25,500 units. At the end of production process, 10% of net production units are scrapped as defective. Opening stock of Product-X for March is budgeted to be 15,000 units and closing stock will be 12,000 units. All stock of finished goods must have successfully passed the quality control check. The production budget of Product-X for March, 2016 is —
(A) 25,000 Units
(B) 25,500 Units
(C) 25,950 Units
(D) 20,250 Units.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Management Accounting

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