Need help with production budget question

Sadz
Sadz Registered 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:

Comments

  • Sadz
    Sadz Registered 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 Registered Posts: 474 Dedicated contributor 🦉
    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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