Ligon Enterprises has prepared a production budget for October. Management has determined that the total required production for October is 800,000 units when an ending inventory of 10,000 units is desired and the beginning inventory is 6,000 units. Based on the above information, what were October's budgeted sales?
A) 806,000 units
B) 796,000 units
C) 804,000 units
D) 794,000 units

Question

Quizplus · Accepted Answer

The budgeted sales can be calculated by taking the total required production (800,000 units) and adjusting for the change in inventory: 800,000 units - 10,000 units (desired ending inventory) + 6,000 units (beginning inventory) = 796,000 units.

Ligon Enterprises Has Prepared a Production Budget for October