Need help with production budget question

SadzSadz East MidlandsPosts: 4Registered
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

  • SadzSadz East MidlandsPosts: 4Registered
    Thank you for your help, that explains it perfectly. I just didnt consider that the 20% would also apply to the previous period.
  • Pian32Pian32 Posts: 90Registered
    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.
    AAT Level 4, MAAT
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