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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:

Answer & Solution
Correct Answer: Option D
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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3 Comments
Vidushi Srivastava
Vidushi Srivastava 5 years ago
18000
(15000 -11400) =3600
18000 - 3600
= 14400
14400×100÷90
16000 answe

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Anita Saini
Anita Saini 7 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.
AMIT TIWARI
AMIT TIWARI 8 years ago
Can any one plz calculate this how????