The Cost accountant of a medium size manufacturing firm that specializing in producing one product is in the process of preparing the production budget for the upcoming year. The following information were provided: Sales forecast is estimated to be 40,000 units; desired ending inventory is 10% of forecasted sales; and beginning inventory is expected to be 2,000 units. How many units should be produced for the upcoming year? Question 13

options:

a)42,000 units.

b)44,000 units.

c)38,000 units.

d)40,000 units.