Answer (D) is correct . To calculate the production required in units, determine the projected sales, desired inventories, and expected inventories at the beginning of the cycle. ? Thingone Thingtwo
Answer (A) is incorrect because Subtracting (rather than adding) desired ending inventories and adding (rather than subtracting) expected beginning inventories results in 55,000 and 39,000. Answer (B) is incorrect because The totals of the projected sales and desired ending inventories are 85,000 and 49,000. The respective beginning inventories should be deducted to arrive at the unit-production budget. Answer (C) is incorrect because The projected sales are 60,000 and 40,000. The respective beginning inventories should be deducted and the respective ending inventories should be added to arrive at the unit-production budget.
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