If the number of units produced equals the number of units sold, the number of units in ending inventory will equal the number of units in beginning inventory on the production budget.

Question

Quizplus · Accepted Answer

If the number of units produced equals the number of units sold, then there are no units left over to add to or subtract from the beginning inventory, meaning the beginning and ending inventories are equal on the production budget.

If the Number of Units Produced Equals the Number of Units