Budgeted production for a period is equal to
A)the beginning inventory + sales - the ending inventory.
B)the ending inventory + sales - the beginning inventory.
C)the ending inventory + the beginning inventory - sales.
D)sales - the beginning inventory + purchases.

Question

Quizplus · Accepted Answer

The budgeted production for a period is equal to the sum of the ending inventory and the sales, minus the beginning inventory. This is because the goal is to ensure that the ending inventory meets the sales demand, after accounting for the beginning inventory that is already available. Option A is incorrect because it adds the beginning inventory to the sales, without subtracting the ending inventory. Option C is incorrect because it subtracts sales from the sum of the ending inventory and beginning inventory. Option D is incorrect because it subtracts the beginning inventory from sales and adds purchases, without considering the ending inventory.

Budgeted Production for a Period Is Equal to