The formula for the production budget is budgeted sales in units plus: (a) desired ending merchandise inventory

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The formula for the production budget is budgeted sales in units plus:

(a) desired ending merchandise inventory less beginning merchandise inventory.

(b) beginning finished goods units less desired ending finished goods units.

(c) desired ending direct materials units less beginning direct materials units.

(d) desired ending finished goods units less beginning finished goods units.

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