Answer:
The number of units required for production is equal to budgeted sales plus units in the ending inventory minus the units in the beginning inventory.
Explanation:
The computation of how much unit is produces in a particular year is derived by given formula :
Cost of goods sold = Opening inventory + Purchase - Ending inventory
where,
Cost of good sold is budgeted sales
Opening inventory is that inventory which is introduced in a starting year.
Purchase means how much items or units is required to achieve the production target.
And, Ending Inventory is that inventory which is left in the end of the year.
Thus, The number of units required for production is equal to budgeted sales plus units in the ending inventory minus the units in the beginning inventory.
