Budgeted sales of X for March are 18000 units At the...

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Budgeted sales of X for March are 18000 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 15000 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. 12960

B. 14400

C. 15840

D. 16000

Answer: Option D

Solution (By Examveda Team)

Budgeted sales 18000 Budgeted reduction in finished goods (3600) = 15000-11400 Budgeted production of completed units 14400 Allowance for defective units (10%of output=1/9 of Input) 1600 Production budget 16000

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Comments (3)

  1. Vidushi Srivastava
    Vidushi Srivastava:
    4 years ago

    18000
    (15000 -11400) =3600
    18000 - 3600
    = 14400
    14400×100÷90
    16000 answe

    ________

  2. Anita Saini
    Anita Saini:
    6 years ago

    Production=sales +closing - opening
    Sales=18000
    Closing=11400
    Opening=15000
    18000+11400-15000=14400
    But 10%as defective so production 14400/90*100=16000 Ans.

  3. AMIT TIWARI
    AMIT TIWARI:
    7 years ago

    Can any one plz calculate this how????

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