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

question 2

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:

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased by customers.

Work in Process

Partially completed goods that are still in the production process at the end of an accounting period.

Manufacturer's Inventory

Includes raw materials, work in process, and finished goods held by a manufacturer, representing various stages of production.