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 16000Join The Discussion
Comments ( 3 )
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
18000
(15000 -11400) =3600
18000 - 3600
= 14400
14400×100÷90
16000 answe
________
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.
Can any one plz calculate this how????