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

question 134

Multiple Choice

The following information is taken from the production budget for the first quarter: $$\begin{array} { l r } \text { Beginning inventory in units } & 1,200 \\\text { Sales budgeted for the quarter } & 456,000 \\\text { Production capacity in units } & 472,000\end{array}$$ 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:

Fair Value

The compensation received for an asset's sale or the expenditure for a liability's reassignment in an organized engagement with market participants on the valuation date.

IFRS

International Financial Reporting Standards, which are a set of accounting rules used globally to prepare financial statements.

Revaluation Method

An accounting strategy used to adjust the book value of a fixed asset to reflect its current market value.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines developed by the International Accounting Standards Board, providing uniform financial statement reporting.