Need help with production budget question

Sadz
Sadz East MidlandsRegistered Posts: 8
Can anyone help explain how the production budget (units) figure was calculated?
The only part I dont get of the answer is how the production budget was calculated with just the sales and closing inventory.




Textbook answer:

Best Answer

Answers

  • Sadz
    Sadz East MidlandsRegistered Posts: 8
    Thank you for your help, that explains it perfectly. I just didnt consider that the 20% would also apply to the previous period.
  • Pian32
    Pian32 MAAT Posts: 448
    Yeah the best thing to remember for these questions is that unless stated otherwise all budget assumptions have been met.

    I've seen some questions state for instance that there is a certain opening inventory that doesn't match the budget rule.
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