When preparing a production budget,the desired ending finished goods inventory for the first period is:
A)the beginning finished goods inventory for the second period.
B)always the same as the beginning finished goods inventory for the first period.
C)not used in this budget.
D)always less than the beginning finished goods inventory for the second period.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The desired ending finished goods inventory for the first period becomes the beginning finished goods inventory for the second period, as inventory levels are carried over from one period to the next in budgeting.

When Preparing a Production Budget,the Desired Ending Finished Goods Inventory