A. 5,80,000
B. 5,50,000
C. 5,00,000
D. 5,75,000
Explanation:
Using production related budgets, units to produce equals budgeted sales + desired ending finished goods inventory + desired equivalent units in ending W-I-P inventory – beginning finished goods inventory – equivalent units in beginning W-I-P inventory. Therefore, in this case, units to produce is equal to 5,00,000 + 1,50,000 + 60,000 – 80,000 – 50,000 = 5,80,000
Dear admin
very good effort of you and your time
please show explanation below every accounting question
INSHALLAH we will add it in future. you can also help us by submitting explanation here in comment section. thanks
Using production related budgets, units to produce equals budgeted sales + desired ending finished goods inventory + desired equivalent units in ending W-I-P inventory – beginning finished goods inventory – equivalent units in beginning W-I-P inventory. Therefore, in this case, units to produce is equal to 5,00,000 + 1,50,000 + 60,000 – 80,000 – 50,000 = 5,80,000.
Using production related budgets, units to produce equals budgeted sales + desired ending
finished goods inventory + desired equivalent units in ending W-I-P inventory – beginning
finished goods inventory – equivalent units in beginning W-I-P inventory. Therefore, in this case,
units to produce is equal to 5,00,000 + 1,50,000 + 60,000 – 80,000 – 50,000 = 5,80,000.