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

question 33

Multiple Choice

The following information is taken from the production budget for the first quarter: $$\begin{array} { l r } \text { Beginning inventory in units } & 1,200 \\\text { Sales budgeted for the quarter } & 426,000 \\\text { Capacity in units of production facility } & 472,000\end{array}$$ 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)428,000
• B)424,000
• C)474,000
• D)429,200

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Definitions:

Direct Expenses

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Allocation

The process of distributing resources or costs among various accounts or departments based on a specific criteria.

Departments

Distinct areas within an organization, each specializing in specific functions or tasks.

Departmental Information

Departmental information involves data or records specific to a particular department within an organization, often used for internal planning, decision-making, and performance evaluation.