Cost and Management AccountingQuestion 5423 of 251
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6. The total number of units to be produced of product P is:

Options

A1,03,000 units
B97,000 units
C92,000 units
D1,27,000 units
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Correct Answer

✅ Option A — 1,03,000 units

All Options:

  • A1,03,000 units ✓
  • B97,000 units
  • C92,000 units
  • D1,27,000 units

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Detailed Solution & Explanation

The production budget for Product P is calculated using the standard formula:
Production of P=Expected Sales of P+Closing Stock of P−Opening Stock of P\text{Production of P} = \text{Expected Sales of P} + \text{Closing Stock of P} - \text{Opening Stock of P}
Given data:
1. Expected Sales of P = 1,00,000 units
2. Closing Stock of P = 15,000 units
3. Opening Stock of P = 12,000 units
Production of P=1,00,000+15,000−12,000=1,03,000 units\text{Production of P} = 1,00,000 + 15,000 - 12,000 = 1,03,000 \text{ units}
Hence, **Option A** is the correct answer.

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