Answer (A) is correct . Rombo’s required production for the year can be calculated as follows: Sales for year 4,000 Add:? ending finished goods inventory 600 Less:? beginning finished goods inventory (900) Required production 3,700
Answer (B) is incorrect because This number represents the level of unit sales, not production, for the year.
Answer (C) is incorrect because This number of units results from improperly adding beginning finished goods and subtracting ending finished goods.
Answer (D) is incorrect because This number of units results from failing to subtract the beginning finished goods inventory.
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Rombo Company’s production budget will show total units to be produced of
