The Following Information Is Taken from the Production Budget for the First

question 1

Multiple Choice

The following information is taken from the production budget for the first quarter: $\begin{array}{lr}\text { Beginning inventory in units } & 1,200 \\\text { Sales budgeted for the quarter } & 456,000 \\\text { Production capacity in units } & 472,000\end{array}$ How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?

• A)458,000
• B)454,000
• C)474,000
• D)459,200

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Definitions:

Ending Inventory

The financial value of products on hand for selling at the end of a fiscal period.

Units

basic quantities or measurements used as a standard to express values, amounts, or sizes.

Cost of Goods Sold

Direct costs attributable to the production of goods sold by a company, including material, labor, and manufacturing overhead expenses.

Ending Inventory

Merchandise value ready for sale at the close of an accounting cycle.