What is the budgeted production volume for the three months to 30 September 2011?

SolutionCo has prepared budgets based on the following assumptions:

Sales volumethree months to 30 September 2011:85,720 units three months to 31 December 2011:94,560 units

Inventory volumeat 1 July 2011:10% of sales for the next three months at 1 October 2011:75% of sales for the next three months

What is the budgeted production volume for the three months to 30 September 2011?
A . 86,383 units
B . 87,200 units
C . 84,240 units
D . 86,604 units

View Answer

Answer: C